The Dynamics of AB5 and Independent Contractors vs. Employees
When: May 20, 2021
Speaker: David Daniels, Esq.
The California legislature set its sights on limiting employers’ use of independent contractors in the gig economy, and it has had a dramatic impact for all employers. AB 5, which codified the California Supreme Court’s ABC test for independent contractors as set forth in the Dynamex Operations West, Inc., v. Superior Court of Los Angeles (2018), was signed into law by Governor Newsom on September 18, 2019 and became effective on January 1, 2020. Under this test the hiring entity must be able to prove all three of the following:
1. The hiring entity does not exert significant control over the worker;
2. The services are “outside the usual course of business” for the hiring entity;
3. The worker holds him or herself out to the world as an independent business
The B prong has proven especially vexing. A company will likely fail the B prong if the contracted worker is providing services essential to the hiring company’s business model. In this program we will discuss the nuances of AB 5 and whether a true independent contractor relationship can still exist in California, as well as the many exemptions to AB 5 and how the California employer is dealing with this law.
Dave Daniels is an accomplished trial lawyer with a wide-ranging litigation practice encompassing a variety of commercial contract litigation, employment, tort, coverage, professional liability and construction disputes. He is recognized as a premier defense and trial attorney in Northern California having served as President of the Association of Defense Counsel of Northern California and Nevada.
For over 25 years, Dave has defended many of California’s most significant businesses, both non-profit and for-profit, and professionals throughout federal and state courts including class and multi-district litigation.
Dave’s commercial practice includes directors and officer claims, suits under the False Claims Act, RICO, Fair Business Practice Act, TCPA, FDCPA, shareholder derivative suits, breach of fiduciary duty claims, trademark and copyright, restrictive covenants, trade libel, business defamation, trade secret and confidential business information suits and many other business law and partnership disputes. Dave serves as outside general counsel for a number of his clients. He has a particular focus on emerging technology companies, healthcare, manufacturing, medical device, hospitality and construction companies.
Dave has defended virtually every type of employment claim including section 1983 cases; discrimination; sexual harassment; wrongful discharge; violations of state and federal employment laws and regulations, including FMLA, CFRA, ADA, FEHA, Title VII, EPPA, ADEA, and wage and hour disputes, and restrictive covenant matters.
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Cost is $15 for PCBA members and $25 for non-PCBA members.