The War Against Independent Contractor Status Continues
Beginning January 1, 2020 dramatic changes will take effect that will dictate how employers classify workers – as employees or independent contractors. Two recent developments, the ruling in Dynamex and the passage of AB5 will affect nearly every industry sector throughout California. If you run or work for an organization facing these crucial and complex topics, then join keynote speaker Paul Fleck at the PIHRA 2020 Legal Update.
In his keynote session, The War Against Independent Contractor Status Continues, Mr. Fleck will discuss the parameters of the ABC test and industry exemptions. He will also discuss when the Borello factors come back into play when classifying your workforce. Furthermore, you’ll learn best practices on how to meet these new requirements and avoid the pitfalls of misclassification.
Mr. Fleck will provide takeaways such as:
- Tips and strategies to ensure compliance with the new ABC test under Dynamex and AB5;
- Receive the latest case updates in this area of law;
- In-depth discussion of best practices on how to meet the new requirements to avoid misclassification.
Mr. Fleck’s PIHRA 2020 Legal Update keynote session will be informative and entertaining. It’s a must-attend for California employers who need to know about these complex legislative topics. In addition, business owners and HR pros will gain crucial insight to navigate employee classification. Above all, you’ll learn how to defend your organization and minimize worker classification risks.
Keynote Speaker Spotlight: Paul Fleck, Atkinson, Andelson, Loya, Ruud & Romo
Special thanks to contributing writer and PIHRA Programs Chair, Baskaran Ambalavanan, who conducted this interview with our PIHRA 2020 Legal Update Keynote Speaker Paul Fleck.
PIHRA: What are the biggest challenges in the ABC Test under Dynamex?
Paul Fleck: The biggest challenge under Dynamex and AB5 is that all three factors of the ABC test must be satisfied in order to qualify as an independent contractor. This is a major deviation from Borello, which allowed for a weighing of several different factors.
2020 will be a year of challenge for employers with AB5. AB5 impacts much more than the Ubers and Airbnb world. How should small businesses and mid-size employers navigate with Independent contractors?
Paul Fleck: The reason why this topic is so monumental is because all businesses in California are impacted, not just those relying on independent contractors for their business model. Small and mid-size employers will discover the most problems with the one-off projects that were previously handled by individuals performing the service as side work and not as part of any full-time or regular business.
Can you help our members understand the right application of the Borella Standards vs ABC Test?
Paul Fleck Historically, “control” was a major theme when weighing Borello factors. Now, while control over the work and the worker remains a factor, the business and economic realities that the worker must regularly operate a business and must be providing services to other clients will be a major hurdle in the independent contractor analysis.
What must employers avoid to be compliant with AB5 and the ABC Test?
Paul Fleck: In order to be compliant with AB5 and the ABC test, California employers must make certain independent contractors are in fact running a business and providing services to other clients, just as any real business does.
Why are you excited to present at the PIHRA 2020 Legal Update?
Paul Fleck: I look forward to providing employers with the tools they need to address this issue prospectively, instead of reacting to a misclassification issue when it is too late.