classified as an independent contractor. ….
classified as an independent contractor.
Jan-Pro argued they could not have anticipated a decision on Dynamex that distinguished between employees and independent contractors for any obligations imposed by a wage order; therefore, the ABC test should not apply retroactively. However, the Court noted the Dynamex ruling did not change any settled rule and, for purposes of public policy and fairness for businesses that comply with wage order obligations, favored retroactive application.
POLITICO reported this decision to apply Dynamex retroactively would mean many companies, including the proponents of Prop 22, could have to pay retroactive wage claims.
Although Prop 22 passed, it does not provide retroactive protection.
To see how the Dynamex decision and AB 5 apply to you, the California Pool and Spa Association has created a detailed backgrounder of current independent contractor law.
The Association also has several webinars on the topic available to members at the website www.thecpsa. org.