Dynamex Ruling Applies Retroactively, Another California Court Says

Oct. 9, 2019, 6:34 PM UTC

The three-factor “ABC test” in California that makes it difficult for companies to label its workers as contractors should apply retroactively, a state appellate court found.

The court became the second state appeals court to reach the conclusion about the 2018 California Supreme Court ruling that created a rigid classification standard. The decision on Oct. 8 comes after California lawmakers adopted a new law that would codify the test created by Dynamex West Operations v. Superior Court. The distinction between classifying workers as contractors or employee is key for companies, as only employees are entitled to benefits such as ...

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