California Supreme Court

Welcome back for this month’s edition of the Bubbler!  There’s plenty to talk about, so let’s jump right in.

The California Supreme Court issued an important decision this week addressing the test for whether a worker is an independent contractor or an employee.  The U.S. Supreme Court declined to review a Seventh Circuit decision upholding an employer’s rule that a months-long leave of absence was not a reasonable accommodation. The Ninth Circuit held that employers are prohibited from using an employee’s past salary as a legitimate “factor other than sex” for purposes of defeating a Fair Pay Act claim, emphasizing that allowing the inclusion of prior salaries would only perpetuate gender pay disparity. The Fifth Circuit downsized ERISA fiduciary standards in a ruling that invalidated a set of seven expansive fiduciary rules. The Northern District of Illinois issued an unusual ruling, holding that two plaintiffs’ claims were subject to an enforceable arbitration agreement, yet refused to compel arbitration. The DOJ challenged a set of competitors’ no-poaching agreements as per se violations of the Sherman Act, which regulates concerted anti-competitive action. Finally, in the wake of the #MeToo movement, New York (state and city) have passed new laws concerning workplace sexual harassment.

As always, stay tuned for more employment matters updates!

This week, the California Supreme Court rejected the old “totality of circumstances” test to determine if a worker was properly classified as an independent contractor in favor of a new “ABC test” under which employers will be required to classify most workers as employees.

Continue Reading California Rewrites the Independent Contractor Test – What Your Business Needs To Do Now to Pass It

The Uber saga continues in O’Connor v. Uber Technologies, Inc. – a closely watched case that will impact the future of the gig economy.  Last time we visited this case, the 9th Circuit Court of Appeals had declined to review the district court’s class certification decision, which certified a class of thousands of Uber drivers.  This time around, the District Court issued an order that expanded the original class.  But Uber has already countered with a move of its own in response to this latest decision.  We discuss the latest below.

Continue Reading Uber Class Action Update: Court Finds Arbitration Agreement Unenforceable and Broadens Class of Drivers