Recent Blog Posts
- California Voters Pass Proposition 22, Allowing App-Based Ride Share and Food Delivery Companies to Treat Drivers as Independent Contractors Continue Reading… As we have written here before, ride share and food delivery companies doing business in California had a lot at stake in the November 3, 2020 election. In fact, it was possible that those businesses might even cease doing business in California depending on the outcome of the election – or dramatically change their business models in the state.
Specifically, on November 3, 2020, California voters were asked to decide the fate of Proposition 22, the ballot initiative that would remove... More
- California Election Day Stakes for Ride Share Companies Just Got Higher After Appellate Ruling Continue Reading… November 3, 2020 has been circled on the calendars of app-based ride share and food delivery companies doing business in California for many months now. After a new ruling by the California Court of Appeal, those companies have likely gone back and circled that date a few more times in thick red ink.
On November 3, 2020, California voters will decide the fate of Proposition 22, the ballot initiative that, if passed, will allow app-based ride share and food delivery companies... More
- November Elections May Decide Fate of Gig Worker Classification Regulations Continue Reading… We recently authored “Elections May Decide Fate of Gig Worker Classification Regs,” the first of a series of articles on wage and hour issues for Law360. Subscribers can access the full version here – following is an excerpt:
As the gig economy has grown, so too have questions about it. One of the most consequential questions in the past several years has been whether workers in the gig economy are properly classified as independent contractors for purposes of various federal and state... More
- California Adds More Exemptions to Controversial Independent Contractor Statute Continue Reading… We have written frequently here about AB5, California’s controversial law that creates an “ABC” test that must be satisfied in order for a worker to be treated as an independent contractor. As we explained here, AB5 codified and expanded the “ABC” test adopted by the California Supreme Court in Dynamex Operations West, Inc. v. Superior Court for determining whether workers in California should be classified as employees or as independent contractors.
While the statute was unambiguously aimed at ride share and food delivery companies... More
- Ninth Circuit Conclusion That Amazon Delivery Drivers Don’t Need to Arbitrate Their Claims Under FAA’s “Transportation Worker” Exemption Highlights Conflict Among Courts Continue Reading… Given the ever-increasing number of wage-hour class and collective actions being filed against employers, it is no surprise that many employers have turned to arbitration agreements with class and collective action waivers as a first line of defense, particularly after the United States Supreme Court’s landmark 2018 Epic Systems v. Lewis decision.
If there is a common misconception about Epic Systems, however, it is that the Supreme Court concluded that all arbitration agreements with all employees are enforceable under all circumstances. ... More
- Emergency Stay of TRO Against Ride Share Companies Means Californians Won’t Have to Live Without Services Continue Reading… As we wrote here just several days ago, Californians were facing the seemingly unimaginable this week– the possibility of living without ride share services for the foreseeable future.
In short, a state court judge issue a temporary restraining order (“TRO”) requiring ride share companies to treat their drivers as employees in purported compliance with AB 5, California’s controversial new law that only permits workers to be classified as independent contractors in most industries if they satisfy an “ABC” test.
After the same... More
- Californians May Have to Live Without Ride Share Services During Appeal of Temporary Restraining Order Continue Reading… To some, it may feel like it was a lifetime ago when ride share companies did not even exist. In those seemingly long-ago days, people relied upon friends to drive them to or from the airport, or assigned designated drivers for those nights when they attended events where alcohol would be served, or used other methods of transportation to travel the roadways to their various destinations.
Californians may soon be living like that again.
As we shared the other day, a California... More
- Ride Share Companies Likely to Appeal California TRO Requiring Them to Treat Drivers as Employees Continue Reading… We have written here frequently about California’s controversial AB 5 law, which permits companies to treat workers as independent contractors only if they satisfy a stringent “ABC” test.
The broad statute, unambiguously written to try to force companies to treat gig economy workers as employees, has been the subject of a great deal of debate and litigation, including a state court action filed by the State Attorney General trying to force ride share companies to treat their drivers as employees.
In the... More
- Illinois Court Joins California Courts in Requiring Postmates to Pay Millions in Arbitration Fees to Defend Hundreds of Individual Arbitrations Continue Reading… As we wrote here recently, two federal courts in California rejected Postmates’ attempt to escape having to defend thousands of individual arbitrations filed by drivers contending they have been misclassified as independent contractors. Those decisions require Postmates to pay millions in arbitration fees alone.
A federal court in Illinois has now reached the same conclusion, holding that Postmates must proceed with more than 200 individual arbitrations that will cost Postmates $11 million in arbitration fees.
Arbitration agreements with class action waivers have... More
- Epstein Becker Green Introduces Two New Tools to Assist Employers in Preparing for Federal Wage and Hour Investigations Continue Reading… As employers continue to deal with workplace issues related to COVID-19, you should be aware that the U.S. Department of Labor’s Wage and Hour Division (“WHD”) has indicated that it will be investigating allegations of wage and hour violations that have occurred as a result of the rapid workforce changes undertaken by many organizations earlier this year. Unfortunately, as you may know, the WHD rarely announces those investigations in advance and, instead, employers typically learn of them when a letter... More