ABC Test Proper for Misclassification Claims Pre-Dynamex
A group of janitor-franchisees sued their employer alleging it misclassified them as independent contractors. In 2018, during the pendency of the case the California Supreme Court issued a landmark decision in Dynamex Operations W., Inc. v. Super Ct. adopting the "ABC" test for classifying employees. Here, the Ninth Circuit answered the question that has been dogging litigants ever since—whether Dynamex should apply retroactively. The court found the ruling did apply retroactively and in doing so did not violate franchisors' due process rights. The court remanded the case to determine issues of fact regarding the employment classification of the janitors. Advocates for employers note that California courts have held the ABC test does not apply in the joint employer context, to workers' compensation claims, or to all wage-and-hour claims; legislative efforts are also under way to overturn the Dynamex decision.