31 Jan

January 2020 California HR Legal Updates

Posted at

8:00am

in

AB 5 vs. Truckers

What happened?
A preliminary injunction was granted to prevent the enforcement of AB 5 against motor carriers operating in California.

What are the details?
The preliminary injunction will be in effect until a trial has taken place; however, the Ninth Circuit can decide differently. This injunction allows truck drivers to continue to operate as independent contractors in California.

What do employers need to do?
If you have any independently contracted truck drivers in California, no changes need to be made. We will continue to monitor this topic closely.

Article: https://www.seyfarth.com/news-insights/state-enforcement-of-ab-5-against-motor-carriers-preliminarily-enjoined.html

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AB 5: Will Dynamex be Applied Retroactively?

What happened?
On January 15, 2020, the California Supreme Court appealed, then stalled the previous decision to apply the Dynamex decision retroactively.

What are the details?
The California Supreme Court will decide whether the Dynamex decision will, in fact, be applied retroactively. If this decision is approved, it will also mean that AB 5 will be applied retroactively as well which will open up employers to possible liability and potential wage and hour violations.

What do employers need to do?
There aren’t any actions employers can take to change the past; however, employers should always make sure they are following the new guidelines in AB 5 in determining if an individual is an employee or independent contractor.

AB 5: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB5

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Temporary Hold on AB 51

What happened?
On December 30, 2019, an order was placed temporarily halting the enforcement of AB 51 (anti-mandatory arbitration law).

What are the details?
AB 51 does not allow employers to require employees to sign into an arbitration agreement upon hire. The Eastern District of California decided to put a hold on the new law, which was set to go into effect January 1, 2020, until the District Court can review it. The Eastern District is concerned that the new law is preempted by federal law (which favors the use of arbitration).

What do employers need to do?
During this hold, employers are strongly advised to review their current arbitration agreements with their legal counsel.

AB 51: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB51

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