CALIFORNIA INDEPENDENT CONTRACTOR TEST APPLIES RETROACTIVELY

In what is deemed to be a big blow to companies, the Ninth Circuit Court of Appeals held that California's Independent Contractor Test, which was established in Dynamex Operations West, Inc. v. Superior Court last April, should be applied retroactively. This means that the "ABC" test, which makes it difficult for businesses to classify their workers as independent contractors rather than employees, will be applied retroactively. In other words, an employer who hired a worker as an independent contractor in 2016 will still be subjected to the "ABC" test established in Dynamex. (Click here for our blog post detailing the "ABC" test).