Worker Classification to be Tested in California Supreme Court

In January, 2015, the California Supreme Court granted review of Dynamex Operations West, Inc. v. Superior Court (Lee) (2014) 230 Cal.App.4th 718.

The issue presented is as follows:

In a wage and hour class action involving claims that the plaintiffs were misclassified as independent contractors, may a class be certified based on the Industrial Welfare Commission definition of employee as construed in Martinez v. Combs (2010) 49 Cal.4th 35, or should the common law test for distinguishing between employees and independent contractors discussed in S.G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341 control? (source)

If the Court expands the test for worker classification to the employment-oriented and more simple, three pronged definition of "employer" found in the IWC Wage Orders as it currently applies in minimum wages actions, the ramifications to California taxpayers will be significant. (See Cal. Code Regs., tit. 8, ยง 11090, subd. 2 (D): "'Employ' means to engage, suffer, or permit to work.") If the California Supreme Court decides that the Wage Order definition controls, California courts would potentially no longer rely on the common law, multi-factor test, as defined in Borello, but would rather simply turn to the more employment-oriented "engage, suffer, or permit to work" definition. In other words, nearly every worker could potentially be classified as an employee.

Contact our attorneys today to review your contract worker hiring policies.

No Comments

Leave a comment
Comment Information

Contact the Law Office of Williams & Associates

For more information about our tax law services, or to discuss your tax matter, call our Sacramento office at (916) 488-8501 or toll free at (800) 684-7147. You may also send us an inquiry via email.

Contact the Firm

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Location:

3600 American River Drive, Suite 135
Sacramento, CA 95864

Toll Free: 800-684-7147
Phone: 916-488-8501
Fax: 916-488-8196
Sacramento Law Office Map