California Supreme Court Adopts New Independent Contractor ABC Test

The California Supreme Court, in Dynamex Operations v. Superior Court, held that for purposes of claims under the California Wage Orders “engage, suffer or permit to work” determines employee status, thus requiring a defendant who disputes that a worker is an employee (rather than an independent contractor) to prove (A) the worker is free from their control and direction in connection with performing the work, both under contract and in fact; (B) the worker performs work outside the usual course of their business; and (C) the worker customarily engages in an independently established trade, occupation, or business of the same nature as the work performed for the hirer. This decision will have a large impact on the number of employees who qualify for independent contractor status.