"ABCs" of Contract Labor
The Department of Labor reversed the Obama era guidance for independent contractors in June of 2017, but ongoing questions about misclassification continue. There were a couple of new developments in late April.
On April 30, the California Supreme Court issued an opinion that effectively sets new standards for California employers that are similar to the revoked DOL provisions. The California "ABC test" sets provisions relating to control, scope of work, and business characteristics for legitimate contractors.
On the same day, a coalition of 12 state attorneys general filed a brief with the National Labor Relations Board in support of a decision granting the right to organize to a group of misclassified employees. The Administrative Law Judge in the case Velox Express Inc. vs. Jeannie Edge determined that Velox Express, an Indiana medical delivery company, misclassified its drivers as independent contractors and restrained them from exercising their right to unionize.
Beyond the affirmation of the right to organization granted by the NLRB decision, the attorneys general also argued that employers who misclassify employees as independent contractors fail to pay their share of state taxes and assessments. |
