The California Supreme Court issued the landmark Dynamex ruling in 2018, which makes it more difficult for employers to classify workers as independent contractors rather than employees.
Labor unions backed the decision, but corporations, and specifically the technology sector, which relies heavily on independent contractors, are concerned about the potential financial burden and liability this decision will impose on them as employers.
Currently, the conversation between stakeholders is whether the decision applies retroactively.
Governor Gavin Newsom, who is supported by both labor unions and tech companies, is urging the two groups to negotiate a compromise.
The California Legislature is also in the process of considering Assembly Bill 5 to clarify Dynamex.
While workers are theoretically at an advantage with this decision, some independent contractors and employers could be impacted negatively.
We get an update on where the ruling stands and who the winners and losers are.
If you are an independent contractor and you have questions or concerns about Dynamex, we want to hear from you at 866-893-KPCC.
Michael Bernick, counsel for Duane Morris LLP where he practices in the area of employment law; former director of California’s labor department and a Milken Institute research fellow