Santa Clara, CAFrom strippers to cooks to construction workers, independent contractors who say they are misclassified under California labor laws may want to take into consideration what they stand to lose before filing a misclassification lawsuit to be classified as an employee. Sure, the benefits are enticing but they come at a price, such as loss of independence
A California Supreme Court landmark decision last year,Dynamex Operations West, Inc. v. Superior Court of Los Angeles County, has upended–or disrupted, as many employers believe–small and medium businesses in California. Either way you look at it, the future of work and the economy has changed. (If you haven’t heard about Dynamex, the same-day courier and delivery company classified its delivery drivers as independent contractors. The drivers claimed they should have been employees and the court ruled against Dynamex, saying that the delivery drivers were misclassified.)
INDEPENDENT CONTRACTORS
Besides the obvious app-based companies like Uber and Lyft, many other industries, like strip clubs and hair salons have been affected. On the one hand, those backing the ruling (CA AB5) assert that independent contractors working in the gig economy are deprived of pay and benefits, crucial for stable employment. On the other hand, business owners (such as strip club owners reported by PoliticoCalifornialast week) warn that “disrupting the status quo will hurt dancers by cutting into their take-home pay and ossifying once-flexible work.”