Tuesday, March 2, 2021
On Wednesday, February 10, California 7-Eleven franchise owners asked U.S. District Court Judge Dale Fischer to allow the Ninth Circuit Court of Appeals to rule on the district court’s previous denial of the franchisees’ application for class certification. The franchise owners filed a class action against 7-Eleven, claiming they are actually employees of the franchisor and not independent contractors. The impetus for the franchisees’ motion is a previous ruling from Judge Fischer, that the court should evaluate the franchisees’ claims of California labor code violations under the eleven-factor test set forth in the 1989 holding in
S.G. Borello & Sons Inc. v. Department of Industrial Relations, while claims for violation of California’s wage orders would be subject to decision under the so-called “ABC test.” The California Supreme Court’s 2018 decision in
On Wednesday, February 10, California 7-Eleven franchise owners asked U.S. District Court Judge Dale Fischer to allow the Ninth Circuit Court of Appeals to rule on the district court’s.
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On November 3, 2020, California voters approved Proposition 22, a ballot initiative defining app-based transportation and delivery drivers as independent contractors and adopting specific labor and wage policies for these industries. The adoption of Proposition 22 presents a remarkable example of a voter initiative overruling both the California legislature and the California Supreme Court. Proposition 22 is not just a big deal in California. It is already seen as a potential blueprint for changing labor and employment laws across the country. So what is Proposition 22 and how did it come about?
What Triggered Proposition 22?
Highlights
The California Supreme Court in Vazquez v. Jan-Pro Franchising
International, Inc. ruled that its decision in Dynamex Operations
West, Inc. v. Superior Court 4 Cal. 5th 903 (2018) (Dynamex),
applies retroactively to all cases not yet final as of the date
Dynamex issued on April 30, 2018.
This critical holding finally and definitively answers the open
question regarding the retroactive application of the ABC test for determining employee vs. independent
contractor status.
The ruling means that nearly all cases that were not final as
of the date Dynamex issued will be governed under the ABC standard instead of Borello.
The California Supreme Court in