California Approves Amendments to the AB 5 Independent Contractor/Employee Rules

On September 4, 2020, Governor Newsom signed into law AB 2257, which exempts several additional occupations from the ABC Test under AB 5, and attempts to further clarify the distinction between employer-employee relationships and professionals that run their own independent businesses.  AB 2257 is a lengthy bill that made several significant changes. We have summarized…

New Coronavirus Presumption Likely to Increase Premium Costs for Employers

Yesterday, Governor Gavin Newsom signed an executive order creating a rebuttable presumption that a California employee who contracts COVID-19 contracted it in the course of their employment.  This would entitle the employee to workers’ compensation benefits, unless the employer successfully proved they did not contract it at work.  In a normal workers’ compensation claim, the…

Insurance Commissioner Issues Notice That COVID-19 Workers Comp Injuries Are Compensable Regardless Of Immigration Status.

On April 6, 2020, prompted by the COVID-19 pandemic, California Insurance Commissioner, Ricardo Lara, sent a formal Notice to workers’ compensation insurers reminding them that all workers are entitled to protection under California’s workers’ compensation laws, regardless of immigration status.  More importantly, he added: “Workers’ compensation injuries caused by COVID-19 that arise out of and occur in the course of employment are compensable to the same extent as any…

COVID-19 Paid Sick Leave FAQs

We understand these are extremely uncertain times with the rapid spread of COVID-19 impacting virtually every facet of business and resulting in a wave of emergency legislation. Recently, the Families First Coronavirus Response Act (“FFCRA”) was passed requiring employers with fewer than 500 employees to provide employees with paid leave in certain circumstances related to…

Coronavirus’ Impact on Employment Classification

Support for AB 5 and its “ABC test” aimed at classifying more workers as employees rather than independent contractors appears to be growing due to the Coronavirus pandemic.  The federal, state and local government restriction on businesses and mobility have vastly limited the availability of work.  Independent contractors, who are not entitled to unemployment benefits…