Recent Employment Law Decisions

Ninth Circuit

The Dynamex ABC Test is Retroactive

VAZQUEZ v. JAN-PRO FRANCHISING INTERNATIONAL, INC.

The Ninth Circuit previously certified a question to the California Supreme Court regarding the retroactivity of the Dynamex ABC test regarding independent contractors. The California Supreme Court responded that the Dynamex decision is retroactive. The Ninth Circuit therefore amended and reissued its opinion in this matter.

The Ninth Circuit agreed that Dynamex applies retroactively and rejected Jan-Pro’s myriad arguments for avoiding a decision on the merits. The Ninth Circuit reiterated the California Supreme Court’s conclusion: “Dynamex applies retroactively to all nonfinal cases that predate the effective date of the Dynamex decision.” Dynamex’s ABC test placed the burden on the hiring entity to establish that the worker is an independent contractor not intended to be covered by the wage orders and required the entity to establish each of three factors: (A) the worker is free from the control or direction of the hiring entity in connection with the performance of the work; (B) the worker performs work outside the usual course of the hiring entity’s business; and (C) the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed. The ABC Test set forth how to interpret the phrase “suffer or permit to work” in the California wage orders and stressed that the phrase was intended to be read broadly. Since the analysis is fact-intensive, the Ninth Circuit vacated the

previous grant of summary judgment and remanded to the district court for further development of the record and analysis.

CELA INVOLVEMENT

Congratulations to CELA member Shannon Liss-Riordan of Lichten & Liss-Riordan P.C.!

Ninth Circuit. Amended 2/2/21. 986 F.3d 1106. Opinion by District Judge Block, sitting by designation.

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Legislative Update
By Mariko Yoshihara, CELA Legislative Counsel & Policy Director

CA Passes Retroactive Supplement Sick Leave

Mariko Yoshihara

On Friday, March 19th, Governor Newsom signed COVID-19 Supplemental Paid Sick Leave (SB 95) into law! CELA was part of a broad coalition pushing for these timely and much-needed worker benefits and protections as we all continue to battle through the COVID-19 pandemic.

Beginning Friday, March 29th, California employers must provide employees with up to 2 weeks of paid sick leave when they cannot work for reasons related to COVID-19 or to getting a vaccine. The law will apply retroactivity, meaning an employee can request sick leave pay if the employee took leave for a qualifying reason after January 1st of 2021.  (Note: employers with fewer than 25 employees were exempted.)

Below are some FAQ’s as many of you may be fielding questions from workers who need to take supplemental paid sick leave or who have already taken sick leave and want to get paid for the days they were out on sick leave.

What does COVID-19 Supplemental Paid Sick Leave provide?

  • 2 weeks of fully paid leave, up to $511/day. This is in addition to California Paid Sick Days and any paid sick leave taken in 2020.

What can COVID-19 Supplemental Paid Sick Leave be used for?

  • It provides paid leave if the employee cannot work or telework because:
    • The employee is subject to a quarantine or isolation order due to COVID-19.
    • The employee was advised by a healthcare provider to quarantine due to concerns related to COVID-19.
    • The employee is attending an appointment to receive a COVID-19 vaccine.
    • The employee is recovering from symptoms of a COVID-19 vaccine.
    • The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
    • The employee caring for a family member who has COVID-19, or who has been advised to self-quarantine.
    • The employee is caring for a child whose school or place of care is closed or otherwise unavailable for reasons related to COVID-19 on the premises.

When can the employee take COVID-19 Supplemental Paid Sick Leave?

  • Although the law takes effect on March 29, 2021 (10 days after the bill was enacted), it applies retroactively to January 1, 2021. If the employee already took leave in 2021 for any of the above reasons, the employee can ask the employer to pay for the time the employee was out of work, for up to 2 weeks. The employer must pay the employee in the next pay period. This supplemental paid sick leave will expire on September 30, 2021.

What is the enforcement mechanism?

  • This section shall be enforced as if COVID-19 supplemental paid sick leave constitutes “paid sick days,” “paid sick leave,” or “sick leave” under subdivisions (i) and (n) of Section 246, subdivisions (b) and (c) of Section 246.5, Section 247, Section 247.5, and Section 248.5.
  • Remedies include, but are not limited to, the remedies available to redress any unlawful business practice under Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code.

More information and FAQ’s on 2021 COVID-19 Supplemental Paid Sick Leave is available on the Department of Industrial Relations’ website, available here.

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