Dynamex v. Superior Court: California Supreme Court Clarifies Standard for Independent Contractor Classification under California Wage Orders

Employment Law Commentary, Volume 30, Issue 4

April 2018
Newsletter

Two of the three requirements of a newly established “ABC test” for evaluating whether a worker is an independent contractor or an employee in California will likely make it more difficult for some businesses to classify workers as independent contractors. On April 30, the California Supreme Court issued its highly anticipated opinion in Dynamex Operations West, Inc. v. Superior Court, clarifying the standard that applies to determine whether a worker is properly classified as an independent contractor for purposes of the Industrial Welfare Commission (IWC) wage orders. Dynamex rejects application of the multi-factor test set forth in S.G. Borello & Sons, Inc. v. Department of Industrial Relations, and instead adopts the three-part ABC test for evaluating whether a worker is an independent contractor or an employee covered by the wage orders.

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