In the past few years, California employers and courts have grappled with the impact of Dynamex Operations West, Inc. v. Superior Court, which altered the independent contractor landscape. Dynamex ushered in a new “ABC test” and upended the long-standing Borello multi-factor test, which had previously been applied to determine if a worker was an employee or an independent contractor. With the ABC test, employers have questioned whether a worker, in a misclassification lawsuit, must meet an initial threshold hiring entity test before the employer is expected to establish the ABC test to prove independent contractor status. On March 25, 2022, the California Court of Appeal held in Jose J. Mejia, et al. v. Roussos Construction, Inc. that workers are not required to first establish that they were hired by the employer before the employer has the burden of satisfying the ABC test.
The Mejia case involved unlicensed flooring installers that installed floors on behalf of Roussos Construction Inc. (“Roussos”), a construction company. Between the flooring installers and Roussos were three individuals that acted as intermediaries or middlemen for the flooring installers. The flooring installers called these three individuals their supervisors, whereas Roussos considered these three individuals to be independent subcontractors.
Because these individuals or subcontractors hired and paid the other flooring installers, Roussos maintained that any mistakes in...
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