Modern Tools

What is the Dynamex decision?

What is the Dynamex decision?

The California Supreme Court held on January 14, 2021, that its landmark Dynamex decision, which established a rigid standard under California law for companies to classify workers as independent contractors, and later was codified in and expanded by AB 5, applies retroactively.

When was the Dynamex decision?

April 30, 2018
On April 30, 2018, the California Supreme Court issued a landmark decision in the matter of Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018) 4 Cal.

What are the Borello factors?

Borello Test Factors

  • Whether the work is a regular or integral part of the employer’s business;
  • Whether the worker performing services holds themselves out as being engaged in an occupation or business distinct from that of the employer;

Does dynamex apply retroactively?

The California Supreme Court last month issued its decision in Vazquez v. Jan-Pro Franchising International Inc. holding that the court’s 2018 decision in Dynamex Operations West Inc. applies retroactively.

What kind of delivery service does Dynamex offer?

Dynamex is a nationwide same-day courier and delivery service that offers on-demand, same-day pickup and delivery services to businesses and the public.

Who are the drivers for Dynamex in California?

Dynamex is a nationwide same-day courier and delivery service that offers on-demand, same-day pickup and delivery services to businesses and the public. Prior to 2004, Dynamex classified its California drivers as employees.

What was the California Supreme Court decision in the Dynamex case?

The Dynamex Decision: The California Supreme Court Restricts Use of Independent Contractors. The Court of Appeal also rejected the contention that the multifactor test set forth in Borello is controlling in cases arising under an obligation imposed by an IWC wage order.

Why was the ABC test applied to Dynamex?

In applying the ABC test to Dynamex, the Court noted that a class of delivery drivers could be certified under prong B because the question of whether the delivery drivers were performing outside the usual course of Dynamex’s business could clearly be resolved on a classwide basis.