Today’s Hot Topic focuses on some of the new legislative changes set to take effect in California on January 1, 2020. Teresa McQueen talks about the new laws impacting mandatory arbitration agreements, the codification of the Dynamex ABC test, and what policies you’ll need to have in your organization’s employee handbook as of January 1st
“Enacted to quote, “codify the decision in the Dynamex case and clarify its application,” AB 5 does nothing more than muddy the waters and once again add confusion to what was – for the better part of a year – a very straightforward analysis.”
– Teresa McQueen
Highlights From This Week’s Workplace Perspective:
- ABC test remains in effect, but if a court rules that the 3-part ABC test cannot be applied, then the issue of whether individual is an employee or independent contractor is to be determined by applying the Borello factors
- Keep in mind that the ABC test is an ‘all or nothing’ test – all 3 factors must be met for the individual to be classified as an IC – while Borello requires a weighing of the facts against many various factors
- The existing Department of Fair Employment & Housing deadline for filing claims of harassment, discrimination or retaliation is extended from 1 year to 3 years (from date of last act of harassment, discrimination or retaliation – unless an exception applies)
- AB 51 prohibits employers – not subject to Federal Arbitration Act – from requiring applicants/employees to agree, as a condition of employment, to mandatory arbitration of employment related claims (under the CA Labor Code or the Fair Employment & Housing Act)
- Deadline for complying with SB 1343 is extended by SB 788 to January 1, 2021 (with some exceptions)
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