On November 12, 2020, the President of Mexico, Andres Manuel López Obrador, sent a draft bill to dramatically change subcontracting (outsourcing) regulations applicable to private companies. If approved by Congress, the bill will significantly impact companies with outsourcing and insourcing (with dual
What has changed
On December 10, 2019, the United States, Canada and Mexico reached an agreement on a revised United States-Mexico-Canada Agreement (“USMCA”), which establishes a rapid response labor mechanism (“RRLM”) for dispute resolution for alleged violations of the right of freedom of association and the right to collective bargaining in these countries. The mechanism allows the US and Canadian governments to make claims against facilities in Mexico for potential violations of these rights, to the extent that the rights are established by Mexican law. The Mexican government may also file a claim for potential violations to these labor rights in the US or Canada, but only if the facility involved is under an enforced order of the National Labor Relations Board or the Canada Industrial Relations Board, respectively. This mechanism cannot be invoked for disputes of this nature between the US and Canada.
Join us in our new Palo Alto office for a breakfast briefing on October 30 as we explore the top 5 trends impacting multinational employers in EMEA.
Hear from leading practitioners in 5 key EMEA jurisdictions – France, Germany, South Africa, Spain and the United Kingdom – as we address these key developments:
Today California Governor Gavin Newsom signed a landmark bill making it more difficult for companies to engage independent contractors. (See our previous coverage HERE.) Assembly Bill 5 “will help reduce worker misclassification — workers being wrongly classified as ‘independent contractors’ rather than employees, which erodes basic worker protections like the minimum wage, paid sick days and health insurance benefits,” Newsom wrote in a statement.
Continue Reading The Controversial ABC Test From Dynamex Is Codified In Law — California’s Gig Economy Braces For Change
Modern slavery exists today in many forms, including forced labor, involuntary servitude, debt bondage, human trafficking and child labor. According to the Walk Free Foundation’s Global Slavery
Index, published with input from the United Nations’ International Labor Organization and the International Organization for Migration (IOM), as of 2016, an estimated 40.3 million men, women and…
We’re excited to announce a new article authored by Jim Baker that was published in the Summer 2019 issue of the Benefits Law Journal.
In this article, Jim covers how the dramatic increase in the number of workers who are classified as independent contractors is changing how employers and workers interact, specifically the implications on…
On July 22, 2019, a three-judge panel for the Ninth Circuit withdrew its holding that Dynamex Operations West, Inc. v. Superior Court—the landmark California Supreme Court decision that makes it harder for companies to rely on independent contractors—applies retroactively. The panel held instead that the question should be decided by the state’s highest court.
Continue Reading Scratch That: The ABC Test Might Not Apply Retroactively
The California State Assembly passes a Bill that codifies the infamous “ABC” test for independent contractor determination — will the Senate follow suit, and will the Governor sign the new legislation into law?
The New Bill
On May 29, 2019, by a 55-11 vote, the state Assembly passed AB 5, a bill that would codify the California’s Supreme Court’s decision in Dynamex Operations West, Inc. v. Superior Court. …
Continue Reading California Assembly Passes Bill Codifying “ABC” Test For Independent Contractor Determination
Hiring Entity: When are gig workers employees?
Four Government Agencies & Courts: It depends!
Trying to track the employment status of gig workers will make your head spin. Contractors? Employees? Super heroes?
In the last few weeks, four federal and California state agencies and courts — the US Department of Labor, the National Labor Relations Board, the Ninth Circuit Court of Appeals and the California Labor Commissioner — have all weighed in on the debate. And, the answer is — it depends.
Follow our script below to help make sense of the patchy legal landscape.
In last Thursday’s Vazquez v. Jan-Pro Franchising, the Ninth Circuit made several impactful findings related to the infamous Dynamex decision:
- Aligning with several state court decisions supporting retroactivity, the Ninth Circuit ruled that Dynamex’s ABC test applies retroactively.
- It also applied Dynamex to a multi-level franchise structure, expanding the test beyond the independent contractor context.
- Last, the Court issued guidance to the district court on remand reaffirming the difficulty of “passing” the ABC test.