Janitorial workers were misclassified as independent contractors when they were in fact employees, a California federal court judge has ruled in a long-running dispute.
When a trio of janitorial workers sued Jan-Pro International for minimum wage, overtime, expense reimbursement and other compensation, the company argued that it wasn’t in the janitorial business but was really in the business of selling and supporting master franchises.
The district court initially sided with Jan-Pro, granting summary judgment on the misclassification claim. The workers appealed.
During the appeal, the California Supreme Court decided Dynamex Operations West, Inc. v. Superior Court, where the court adopted the ABC test for determining employee classification for claims governed by California wage orders. The state’s highest court then ruled that Dynamex has retroactive application.
Pursuant to the ABC test, workers are presumptively considered to be employees and can only be classified as independent contractors if the hiring entity demonstrates that the individual satisfies all of the following three conditions:
(A) 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.
(B) The worker performs work that is outside the usual course of the hiring entity’s business.
(C) The worker is customarily engaged in an independently established trade, occupation or business of...
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