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California High Court Adopts New Test For Independent Contractors

May 2, 2018


In its decision on April 30, the California Supreme Court established a new test for classifying workers as independent contractors, with significant implications for the so-called “gig economy.” In Dynamex Operations West, Inc. v. Superior Court of Los Angeles, the Supreme Court laid out the “ABC Test,” which presumptively considers all workers to be employees and permits an independent contractor classification only if the hiring entity can show that all of the following conditions are met:

  • The worker has freedom from control or direction of the hiring entity over how to perform the work, both under contract and in fact;
  • The service is outside the company’s usual course of business or outside of all the places of business for which the service is performed; and
  • The worker is customarily engaged in an independently established trade, occupation or business of the same nature as the work performed for the hiring
  • 2018 Exemption Limits for the Computer Professional and Physician Exemptions

    Effective January 1, 2018, California’s Department of Industrial Relations will begin imposing new rates for the computer software employee exemption and the licensed physician and surgeon exemption to reflect a 2.9% increase in the California Consumer Price Index (CCPI) for Urban Wage Earners and Clerical Workers.

    To be exempt from overtime requirements, a computer software employee’s rates have increased as follows:

    • Minimum hourly rate:  From $42.35 to $43.58
    • Minimum monthly salary:  From $7,352.62 to $7,565.85
    • Minimum annual salary:  From $88,231.36 to $90,790.07

    The minimum hourly pay for licensed physician and surgeon exemption has increased from $77.15 to $79.39.

    Relatedly, the professional, executive and administrative exemptions will also be subject to change after the minimum wage increase takes effect on January 1, 2018.  To qualify as exempt under these classifications, employees must be paid at least two times the state minimum wage in addition to meeting the other exemption

    New I-9 Form Issued by USCIS

    New I-9 Form Issued by USCIS

    July 31, 2017

    Authored by: Alisha Ansari

    A new I-9 Form has been issued by the United States Citizenship and Immigration Services (USCIS).

    Revisions include the following:

    • The Office of Special Counsel for Immigration-Related Unfair Employment Practices is now known as the Immigrant and Employee Rights (IER) Section of the Department of Justice’s Civil Rights Division.  This section is responsible for enforcing the anti-discrimination provisions governing Form I-9 and the E-Verify database.
    • The List of Acceptable Documents now includes the Consular Report of Birth Abroad (FS-240), which is issued by the Department of State to employees born overseas to a US citizen parent.  This document is now included in List C, #2, alongside the certifications of report of birth issued by the Department of State (FS-545 and DS-1350).
    • USCIS has amended language in the I-9 instructions which directs new hires to complete and sign Section 1 “no later than the first day of employment,” rather

    The California Supreme Court Provides Guidance on Day of Rest Requirements

    The California Supreme Court clarified employer obligations under the state’s day of rest statutes, Cal. Labor Code §§ 550-558.1, which entitle employees to one day’s rest in seven.  In Mendoza v. Nordstrom, Inc., 2 Cal. 5th 1074 (2017), a case that was (mostly) good news for employers, the Court unanimously upheld interpretations of the requirement that largely preserved scheduling flexibility for employers and employees alike.

    Three questions were certified to the Court for consideration:

  • Is the day of rest required by sections 551 and 552 calculated by the workweek, or does it apply on a rolling basis to any seven-consecutive-day period?
  • The day of rest requirement is calculated by workweek.  After finding the plain language of sections 551 and 552 “manifestly ambiguous” and the legislative history irrelevant to the dispute, the Court held that the regulatory and statutory schemes of the day of rest laws required the day of

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