• Before Dynamex:

  • Common Law / IRS: https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee

  • Department of Labor: https://www.dol.gov/whd/opinion/FLSA/2019/2019_04_29_06_FLSA.pdf

  • Borello Test: https://scocal.stanford.edu/opinion/s-g-borello-sons-inc-v-department-industrial-relations-30880

• Dynamex Operations v. Superior Court (2018):

  • https://scocal.stanford.edu/opinion/dynamex-operations-west-inc-v-superior-court-34584

  •  “New California AB 5 Law Expands Independent Contractor ABC Test.” September 19, 2019. https://www.dwt.com/blogs/employment-labor-and-benefits/2019/09/california-ab5-employment-law

• AB 5 Law: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB5

• Helpful PDF  overview of AB5 by CA Lawyers for the Arts

• Workers as Employees:

  • Can’t write off unreimbursed business expenses: https://www.irs.gov/instructions/i2106

  • Works Made for Hire/How to Protect your IP:

    • Labor Code: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=3351.5

    • Matthew Swanlund, Work Made for Hiring, L.A. Lawyer, March 2016: https://www.lacba.org/docs/default-source/lal-magazine/2016-test-articles/march2016testarticle.pdf

    • Works Made for Hire: https://www.copyright.gov/circs/circ09.pdf

    • Licensing your ideas: Richard Stim, PROFIT FROM YOUR IDEA 261 (NOLO 6TH ED. 2008).

  • Get wage and hour laws protection (minimum wage, overtime, meal and rest breaks) https://www.workplacefairness.org/wage-hour-claim-CA

  • Mandatory Benefits =

    • Worker’s Compensation: https://www.edd.ca.gov/disability/Employer_Workers_Compensation.htm;

    • SDI: https://legalaidatwork.org/factsheet/state-disability-insurance-sdi/;

    • State Unemployment: https://legalaidatwork.org/factsheet/lost-your-job-your-rights-and-benefits/;

    • Paid Sick Leave CA: https://www.dir.ca.gov/dlse/paid_sick_leave.htm;

    • FMLA: “The FMLA is a federal law that provides job-protected, unpaid leave from work for certain family and serious medical reasons.” https://www.dol.gov/sites/dolgov/files/OASP/legacy/files/PaidLeaveFinalRuleComparison.pdf

  • Employer-reimbursable expenses: https://www.edd.ca.gov/pdf_pub_ctr/de202.pdf

• Workers as Independent Contractors

  • See the Text of AB5 for Exemptions

  • Even if exempt from AB5, Borello test still applies: https://scocal.stanford.edu/opinion/s-g-borello-sons-inc-v-department-industrial-relations-30880

• What Changes for Hiring Entities / Organizations

  • The Fair Labor Standards Act (FLSA) = https://www.dol.gov/whd/regs/compliance/wh1282.pdf

  • The Americans with Disabilities Act = https://www.ada.gov/ada_title_I.htm

  • The Civil Rights Act = https://www.eeoc.gov/laws/statutes/titlevii.cfm

  • Fair Employment and Housing Act (FEHA) = https://www.dfeh.ca.gov/employment/

  • CROWN Act = https://www.thecrownact.com/ ; https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200SB188 

  • SB 1343 =  https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB1343

  • California Fair Chance Act = https://www.dfeh.ca.gov/resources/frequently-asked-questions/criminalhistoryinfoinemploymentfaqs/

  • Payroll withholdings: https://www.edd.ca.gov/pdf_pub_ctr/de202.pdf

• How to avoid hiring more employees

  • Independent Contractors only within exemptions: see text of AB5 for exemptions

  • Business-to-Business exemption only with all requirements: see text of AB5.

  • Professional employer organizations:

https://www.napeo.org/what-is-a-peo/selecting-a-peo/faqs

• Penalties for misclassification

  • CA Labor Commissioner, part of the Division of Labor Standards Enforcement (“DLSE”), under the larger umbrella of Dept. of Industrial Relations (“DIR”) https://www.dir.ca.gov/dlse/HowToFileWageClaim.htm

  • DIR/EDD may audit business sector if they observe/anticipate violations

https://www.edd.ca.gov/pdf_pub_ctr/de231ta.pdf

• Retaliation https://www.dir.ca.gov/dlse/dlseRetaliation.html

MORE RESOURCES:

• California Lawyers for the Arts: https://www.calawyersforthearts.org/

• Legal Aid at Work: https://legalaidatwork.org/

• Partnership for Working Families: https://www.forworkingfamilies.org/resources/tools