AB 5, which went into effect January 1, 2020, codified in the Labor Code the “ABC” test for determining independent contractor status that the California Supreme Court adopted in its 2018 decision in Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal.5th 903. Our bulletin regarding the details of AB 5 can be found
Hiring a Retiree Seems Appealing Until it Leads to an Appeal
Many CalPERS agencies hire CalPERS retirees for limited post-retirement work to help with overflow or special projects. Often times, these retirees are the agency’s former employees who are familiar with the agency and the work to be performed. CalPERS can review these arrangements and determine that the retiree was engaging in unlawful post-retirement work either
Governor Signs AB 5 into Law Codifying ABC Test for Determining Independent Contractor Status
Yesterday, on September 18, 2019, Governor Gavin Newsom signed Assembly Bill No. 5 (AB 5) into law. AB 5 codifies the “ABC” test for determining independent contractor status that the California Supreme Court adopted in its 2018 decision in Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal.5th 903. AB 5 adds section 2750.3
Third Party Independent Contractor Agreements Do Not Guarantee Protection from CalPERS Membership
This post was authored by Kevin J. Chicas.
It is not uncommon for public agencies to contract with another organization or company to provide temporary services to cover for vacant positions. A recent decision issued by the CalPERS Board of Administration (the “Fuller” Decision) illustrates why public employers should be careful about
Independent Contractor = No CalPERS Membership, Right? Not so Fast!
The use of independent contractors in the public sector is becoming more and more common. With rising pension costs coupled with budget cuts, utilizing an independent contractor in lieu of an employee to provide services may be considered a cost-effective approach. These independent contractors can take the form of a “temp worker” or a specialized
Part-Time Employee Traps For CalPERS Employers
This blog post was reviewed and revised in September 2019 to provide the most up-to-date legal information.
Given all the recent public employee pension reform changes to absorb, it is not surprising that part-time employees of CalPERS contracting agencies have received little attention. After all, part-time employees are excluded from CalPERS membership, right? While that
9th Circuit Says Control Is Key In Determining Independent Contractor Status
Many public agencies supplement their workforce with independent contractors. Since independent contractors who perform services are not employees, agencies do not have to pay them according to the requirements of the Fair Labor Standards Act (FLSA). If the contractor does not meet the qualifications for “independent contractor” status, the worker must be treated as an
“But Our Agreement Says They Are An Independent Contractor!” – Navigating “Employee” and “Independent Contractor” Determinations Under the Public Employees’ Retirement Law
If your agency is a contracting agency with the California Public Employees’ Retirement System (CalPERS), chances are you have heard about the important distinctions between an “employee” and an “independent contractor” under the Public Employees’ Retirement Law (PERL). Whether an individual is an “employee” or an “independent contractor” determines whether the individual must be enrolled
Independent Contractors – The Importance of Knowing Who Is and Who Is Not
Shakespeare asked, “What’s in a name?” You may answer “independent contractor,” but someone else would say, “employee.” Does it matter? You better believe it. There are numerous laws that may very well cause employers to pay a lot more than they bargained for when hiring people and treating them as independent contractors. A recent court
CalPERS Employers Beware When Employing CalPERS Retirees – Someone Could Be Watching
For the second time in a month, the San Diego Union-Tribune’s Watchdog tattled on a CalPERS retiree working for a CalPERS employer post-retirement. The first incident the Watchdog tapped CalPERS to look into resulted in a finding of illegal post-retirement employment. CalPERS has not yet reached a finding in the second incident which involves the