Law Alert: Dynamex Legislation Passes California Assembly
May 30, 2019
Dynamex Legislation Passes California Assembly
On Wednesday, May 29, 2019, California’s legislative Assembly passed AB 5, which seeks to codify the ABC Test set forth in last year’s Dynamex decision. While the legislation codifies the test set forth in Dynamex as applied to Industrial Welfare Commission wage orders, it also expands the Dynamex ruling to apply to all of California’s Labor and Unemployment Insurance Codes.
As currently drafted, the legislation specifically identifies several industries that are exempt from application of the Dynamex standard and would, instead, be subject to the pre-Dynamex test that was set forth in S.G. Borello & Sons, Inc. v. Department of Industrial Relations. Although the trucking industry is not included in the list of exempted industries, stakeholders continue to work with the legislation’s sponsor to establish a workable exemption for the trucking industry. The legislation will next be heard in the California Senate Labor Committee in late June.
News from Scopelitis is intended as a report to our clients and friends on legal developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.
© Scopelitis, Garvin, Light, Hanson & Feary, P.C. 2019. All rights reserved.
To subscribe, email TransportationLawAlert@scopelitis.com.