New California Supreme Court Decision on Independent Contractor Status

Jeff Dinkin, chair of Stradling's Employment Law practice group, and associate John Wicker want to inform you on a recent Supreme Court decision on independent contractor status. On April 30, 2018, the California Supreme Court issued an 82-page opinion establishing a new test for determining whether individuals are properly classified as independent contractors under the California wage orders. Employers must establish all three elements of this new ABC Test in order for an individual to be properly classified as an independent contractor. However, the lack of certainty in the standards to apply in evaluating each of the elements in real life situations creates a major challenge. Read the full client alert below for more information.