California Law

Employee or Independent Contractor? California’s New "ABC" Test

The decision whether to classify a worker as an employee or an independent contractor can have a significant impact on both the worker and the business. As an employee, a worker is entitled to the protections of the labor laws, including payment of minimum wage and overtime, meal and rest breaks, paid sick leave, and other workplace protections. An employer is also responsible for paying an employee’s federal Social Security and payroll taxes, employment taxes, unemployment insurance taxes, and providing ...

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Los Angeles Mandates Minimum Wage Increase and Paid Sick Leave

Los Angeles Mandates Minimum Wage Increase and Paid Sick Leave

New Minimum Wage Ordinances in the City of Los Angeles have increased the minimum wage for employees who work for an employer within the City limits for a minimum of two hours during any particular week. The new ordinances also require employers to provide employees with paid sick leave.

Under the new ordinances, which first went into effect on July 1, 2016, the minimum wage rate will continue to ...

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Court of Appeals Reinstates NFL's Four-Game Suspension of Tom Brady

Court Reinstates NFL’s Four-Game Suspension of Tom Brady

In overturning the lower court’s decision and reinstating the NFL’s four-game suspension of Tom Brady, the United States Court of Appeals for the Second Circuit, ruled that NFL Commissioner, Roger Goodell, “properly exercised his broad discretion under the collective bargaining agreement” and that his procedural rulings did not deprive Tom Brady of fundamental fairness.

The Court reasoned that “In their collective bargaining agreement, the players and the League mutually decided many years ago that the Commissioner should ...

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Changes to California Equal Pay Act

California recently passed Senate Bill No. 358, which amends Labor Code Section 1197.5 known as the California Equal Pay Act, to make it easier for an employee to successfully pursue a wage discrimination claim.

According to the California legislature, in 2014 the gender wage gap in California was at 16 cents on the dollar. That means a woman working full-time earned an average of 84 cents to every dollar a man earned. The wage gap extended across almost all occupations and was far worse ...

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FedEx Drivers are Employees Not Independent Contractors

FedEx Drivers are Employees Not Independent Contractors

In a class action lawsuit brought on behalf of approximately 2300 full-time FedEx delivery drivers in California between 2000 and 2007, the Ninth Circuit Court of Appeals ruled that by law the FedEx drivers were employees under California’s right-to-control test.  The Court held that labeling of the drivers as independent contractors in FedEx’s Operating Agreement did not make them so.

The Court explained that the most important factor in determining employee versus independent contractor status is the right-to-control test. The ...

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