California Supreme Court Addresses Employee/Independent Contractor Test
April 30, 2018
Dynamex Operations West, Inc. v. Superior Court
(April 30, 2018, S222732) ___ Cal.5th ___
In Dynamex Operations West, Inc. v. Superior Court, the California Supreme Court has held that a “suffer or permit to work” standard is among the tests that can be applied to determine whether an individual should be classified as an employee or as an independent contractor in wage-and-hour cases alleging violations of obligations imposed by wage orders.
The Court held further that under this “suffer or permit to work” standard, a court “presumptively considers all workers to be employees, and permits workers to be classified as independent contractors only if the hiring business demonstrates that the worker in question satisfies each of three conditions: (a) that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of the work and in fact; and (b) that the worker performs work that is outside the usual course of the hiring entity’s business; and (c) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.”