California Changes Rules On Independent Contractors

As reported by my colleagues in Proskauer's California Employment Law Update, the Supreme Court of California established new rules on April 30, 2018 for determining whether a worker is an independent contractor or an employee for purposes of California's Industrial Welfare Commission (IWC) Wage Orders. The Wage Orders set forth California's requirements for minimum wage, overtime pay, record keeping, and meal and rest periods, among other wage and hour obligations.

In Dynamex Ops. West, Inc. v. Superior Ct., the California Supreme Court held that a worker will be considered an employee of the "hiring entity" for purposes of the Wage Orders unless the "hiring entity" can establish all three of the following factors: