Skip to content

The Dynamex Case: A New Threat to Franchising? alerts franchisors to the California Supreme Court’s recent opinion in Dynamex Operations West Inc. v. The Superior Court of Los Angeles County.

Although not a franchise case, the decision cites two cases that used the ABC test to determine that franchisees were employees of a franchisor, not independent contractors. Assuming the Dynamex test is applied to franchising, it could have far-reaching consequences for our franchise clients with operations in California.

Please click here to read more. Thanks to Ann Hurwitz and Emily Harbison for preparing this alert.

On April 30, the California Supreme Court issued an opinion radically changing the legal landscape for any company engaging independent contractors in California. Dynamex Operations West Inc. v. The Superior Court of Los Angeles County changes the legal test for determining whether workers should be classified as employees or as independent contractors under California’s wage orders. The Court scrapped the multifactor, flexible test (known as “Borello”) that has been used in California for decades. It adopted the “ABC” test, a standard that has its roots in determination of unemployment tax status in other states and presumes workers are employees instead of independent contractors.

This extraordinary decision will have far-reaching consequences for California companies reliant on independent contractors and likely spur a landslide of litigation for years to come. As such, we are recommending that companies engaging independent contractors in California, in any industry, work with counsel to revisit classification decisions and undertake a cost/benefit analysis of reclassifying workers in the near term.

For more, please read our alert HERE.

  Yesterday we hosted a dynamic panel featuring four of our favorite European colleagues for a breakfast briefing in Palo Alto. Susan Eandi moderated a lively discussion with Nadège Dallais (France), Bernhard Trappehl (Germany), Fermin Guardiola (Spain) and Nicola James (United Kingdom).

Our colleagues gave guests an inside look at sociopolitical trends driving employment law change in each of their respective countries, as well as sharing important updates related to practical issues employers are currently facing.

In case you missed it, here are a few of the headlines:

Continue Reading Takeaways From Our European Employment Law Breakfast Briefing

We are pleased to present The Global Employer Magazine 2018 Horizon Scanner. Our easy-to-digest overview of global and regional trends and developments in global employer and labor law is designed to help equip you for the year ahead.

In this issue, we feature:

  • A global overview of the key trends and developments impacting global employers including nationalism and mobility, the gender pay gap, the rise of the modern workforce
  • Regional checklists for the year ahead and data privacy compliance
  • Regional outlooks looking at how the trending global employment law issues are playing out across Asia Pacific, EMEA, Latin America and North America

Click here to download.

Join us for a breakfast briefing on March 27 in Palo Alto for an update on the latest trends and regulations impacting multinational employers in Latin America. Hear from leading practitioners in five key LATAM jurisdictions – Argentina, Brazil, Colombia, Mexico and Venezuela – as we address hot topics that employers are facing right now including:

  • Managing a modern workforce, from contingent workers to outsourcing service models
  • Addressing the gender pay gap, including gender pay legislation and expectations
  • Complying with changes in termination and anti-harassment legislation
  • Predicting the impact of new leadership in Argentina, Brazil, Colombia, Mexico and Venezuela
  • Preparing for significant labor reform in Argentina, Brazil and Mexico
  • and more!

Click here more details, including how to register.

On February 8, 2018, in what is believed to be the first time a gig economy case has been fully decided on the merits, a California federal judge ruled in favored in favor of the company and held that the delivery driver was properly classified as an independent contractor.

The opinion of US Magistrate Judge Jacqueline Scott Corley states that “[a]fter considering all of the Borello factors as a whole in light of the trial record, the Court finds that Grubhub has satisfied its burden of showing that Mr. Lawson was properly classified as an independent contractor.”

In rejecting the driver’s claim that he was actually an employee entitled to minimum wage, overtime and other benefits associated with employee status, the Court awarded the gig economy a significant victory.

Continue Reading Score One For The Gig Economy: California Federal Judge Upholds Independent Contractor Status Of Grubhub Delivery Driver

In our latest podcast, Baker McKenzie partner Joe Deng introduces Tomohisa Muranushi to discuss employment laws in Japan and give an overview of what changed in 2017 as well as what we can expect for the year ahead.

Key Takeaways:

  1. Reduce excessive overtime
  2. Encourage greater female participation
  3. Watch out for developments regarding fixed term contracts

Download now on iTunes | Android | Stitcher | TuneInGoogle Play.

Multinational employers are facing a new era of globalization characterized by the polarized forces of cooperation and competition ─ a duality that makes for a messy business landscape. Our new report,  Globalization 3.0: How to survive and thrive in a new era of trade, tax and political uncertainty, aims to provide corporate leaders with a greater understanding of key trends so they can anticipate, influence and better prepare for the changing world order.

This report focuses on how the aforementioned forces of cooperation and competition are shaping policies in four key areas:

  • Data privacy
  • Investment
  • Labor and human rights
  • Tax

Alongside helpful insights, the report also identifies actions for companies to consider now to prepare for the next era of globalization.

Click here to view and download the full report.

In our latest podcast, Baker McKenzie partner Carole Spink introduces Lois Rodriguez from Madrid to talk about employment laws in Spain and give an overview of what changed in 2017 as well as what we can expect for the year ahead.

Key Takeaways:

  1. Continued debate on the treatment of permanent versus temporary workers, including the issue of severance entitlements
  2. Debate on requirement to track hours – different obligations for part-and full-time employees
  3. Increased attention to gender pay issues and more generally equal pay rights
  4. EU trade secret directive offers greater opportunities to protect trade secret + the importance of being proactive to benefit from this protection
  5. Implementation of GDPR which goes into effect in May 2018 – companies should make sure they comply with the new data privacy obligations

Download now on iTunes | Android | Stitcher | TuneInGoogle Play.