Just when California companies feel prepared for 2020. . . .two new rulings change the landscape yet again. In 2019, Governor Newsom signed two sweeping pieces of legislation into law: AB 5, significantly limiting how workers can lawfully be classified as independent contractors, and AB 51, preventing employers from insisting upon binding arbitration as a…
Governor Gavin Newsom recently signed Assembly Bill 51 (“AB 51”) into law new rules that will prohibit California employers from requiring employees to sign arbitration agreements as a condition of employment. AB 51 is set to take effect January 1, 2020, but it faces an uncertain future. If the law goes into effect in its…
On November 12, 2019, the California Trucking Association (“CTA”) filed an amended complaint against the State of California, seeking to prevent the enforcement of AB 5, California’s new independent contractor test. AB 5 is set to go into effect on January 1, 2020. The lawsuit was initially filed late last year, in response to a…
Shortly after its passing in the California Assembly and Senate, on September 18, 2019, California Governor Gavin Newsom signed Assembly Bill 5 (“AB5”) into law creating significant restrictions on how employers classify their workforce. The new law takes effect on January 1, 2020. First introduced in the Legislature in December 2018, the new law now…
2019 is already well underway. It wouldn’t be a new year in California without new employment regulations. And 2019 brought with it an overhaul of existing regulations as well as some significant new cases from the court system that together affect California employment in several ways. Here is a quick overview of the most critical…
On January 15, 2019, the United States Supreme Court issued a landmark decision, ruling unanimously that independent contractors who work in transportation may not be forced into mandatory arbitration. In New Prime Inc. v. Oliveira, the Court held 8-0 that an exemption in the Federal Arbitration Act (FAA) for transportation workers involved in interstate commerce…
