ABC independent contractor test rule retroactive
The California Supreme Court just ruled that its landmark 2018 Dynamex ruling, announcing a three-part ABC test companies must satisfy to classify workers as independent contractors exempt from California wage rules, applies retroactively to all claims that were not finally resolved before the date of that ruling. The latest ruling may expose some entities whose use of independent contractors fails the strict ABC test to years of added liability that would have been avoided had the use of those workers been subjected to the more flexible independent contractor test used to determine worker eligibility for workers’ compensation benefits.
The state high court issued its ruling in response to a request for guidance from the federal 9th Circuit Court of Appeals in an ongoing case brought against Jan-Pro Franchising. The California Supreme Court is the ultimate authority on questions of California state law.
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