Meal & Rest Breaks

As previously reported, just over a year ago, the California Supreme Court issued a sweeping decision instituting a new test, called the “ABC test,” to determine whether a worker is properly classified as an independent contractor instead of an employee. On May 3, 2019, the California Department of Labor Standards Enforcement (DLSE), issued an opinion letter providing California employers with further insight on how the Labor Commissioner’s Office plans to apply the ABC test.

I was recently retained by a new client to defend the company against wage and hour charges brought by a former employee that were filed with the California Labor Commissioner’s office. As I do whenever I get a new client, I asked if they had an employee handbook or other written personnel policies. Unfortunately, they did not. This makes it much more difficult to defend against employment claims brought by employees. The failure to have written policies may be taken as evidence that you do not comply with your legal obligations.

Last week, the California Supreme Court issued a sweeping decision adopting a new test that will make it much harder for companies to show that workers qualify as independent contractors instead of employees.  The ruling affects all companies in California that work with independent contractors, which includes freelance workers and outside consultants. The Court’s decision in Dynamex Operations West, Inc. v. Superior Court of Los Angeles may end up requiring companies that work with independent contractors to follow wage and hour laws that apply in the typical employer-employee relationship.