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09.19.19
Governor Sounds Death Knell to Most Independent Contractors: The "ABC" Test is Official
By Procopio Senior Associate Annie Ellis and Associate Stephenie M. Alexander As of January 1, 2020, many employers in California will find it almost impossible to make use of independent contractors. This process began last year with a landmark California Supreme Court decision establishing a three-pronged test to determine if a worker should be classified as an independent contractor or employee. That decision has now been codified, with Governor Gavin Newsom signing A.B. 5 into law on ...
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12.21.17
Wage Law Liability Risks Increase for General Contractors in 2018
By Procopio Partner Laurence R. Phillips and Associate Stephenie M. Alexander All general contractors need to be aware that, as of January 1, 2018, California Labor Code Section 218.7 imposes liability for a subcontractor’s failure to pay wages and fringe benefits to its employees. Under this revision in the law, a “direct contractor” (i.e., a contractor that has a direct contractual relationship with an owner) who enters into a contract for the “erection, construction, alteration...
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