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The New ABC’s of California Employment Law
California Labor & Employment Law Review - Volume 35, Issue 3
In April of 2018, the California Supreme Court issued the unanimous, 82-page landmark opinion, Dynamex Operations West, Inc. v. Superior Court,1 announcing the adoption of the ABC test to distinguish employees from independent contractors. The Court explained that the Massachusetts version of the ABC test2 best forwarded the remedial purpose of California law. Unlike multi-factor employment tests, including the test that had previously been used under S.G. Borello & Sons, Inc. v. Dep’t of Indus. Relations,3 the three-pronged, conjunctive version of the Massachusetts ABC test is less easily manipulated and increases predictability.4 The Dynamex Court explained that multi-factor tests create uncertainty for hiring businesses and workers regarding whether a worker has been correctly classified and leave open a loophole in employment protections, because hiring businesses may more easily manipulate workers’ circumstances with an eye towards passing the multi-factor test.
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