The California legislature set its sights on limiting employers’ use of independent contractors in the gig economy, and it will have a dramatic impact for all employers. AB 5, which codifies the California Supreme Court’s ABC test for independent contractors as set forth in Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018)
Uber and Lyft have been sued in separate class action lawsuits in California by drivers challenging
the two companies’ classification of the drivers as independent contractors. The plaintiffs in the two cases argue that the drivers should be classified and paid as employees, which triggers many additional Labor Code provisions for the drivers than if