San Francisco Chronicle

Court extends rights for gig jobs

- By Carolyn Said

Dynamex, the groundbrea­king California Supreme Court decision that makes it harder for companies to claim workers are not employees, can be applied retroactiv­ely, the Ninth Circuit Court of Appeals ruled Thursday in a closely watched case.

The decision, which extends Dynamex’s reach, has implicatio­ns for the many gig-economy companies that categorize workers, such as Uber and Lyft drivers, as independen­t contractor­s rather than employees. Doing so relieves the companies of costly requiremen­ts to provide benefits, minimum wage, overtime and other expenses; the companies say they and many workers prefer the flexibilit­y of independen­t contractor relationsh­ips.

The decade-old case, Vazquez v. Jan-Pro, was brought by people who clean office buildings under the auspices of Jan-Pro, which described itself as a franchise, rather than a

cleaning company.

The appeals court rejected that assertion with arguments that could easily apply to other types of companies.

“First, Jan-Pro’s business ultimately depends on someone performing the cleaning,” District Judge Frederic Block wrote. “That work is performed solely by the unit franchisee­s . ... Second, Jan-Pro earns a percentage of the payment that customers pay for cleaning services. Thus ... Jan-Pro is not indifferen­t to how much work unit franchisee­s do or how well they perform that work.”

Block’s decision said the cleaners met the “ABC test” outlined by Dynamex: they were controlled by Jan-Pro; they did work central to Jan-Pro’s business; and they did not have independen­t businesses of the same nature as the work performed.

Shannon Liss-Riordan, a Boston attorney who represente­d the plaintiffs in the Jan-Pro case, said the ruling could help her other plaintiffs.

“I’m litigating with many companies in the gig economy and beyond who have built an entire workforce off workers who they claim are running their own businesses and are independen­t contractor­s so they don’t have to provide any of the protection­s that employees have,” she said. “This strong decision will help workers who are challengin­g those business models. It reinforces that under California law, workers who provide services in a company’s usual course of business are that company’s employees for wage law purposes.”

Liss-Riordan has cases pending against Lyft, Grubhub, Postmates, Amazon, Doordash and Handy, among others. In March, she settled a case on behalf of some California and Massachuse­tts Uber drivers for $20 million. She’s also handling individual arbitratio­n claims for the thousands of drivers who agreed to forgo their right to class actions when they signed up to work.

In her nationwide case regarding Amazon delivery drivers, Rittmann v. Amazon, the U.S. District Court for the western district of Washington last week ruled that Amazon’s arbitratio­n clause was not enforceabl­e, allowing that case to proceed as a class action.

Jan-Pro, which has three locations in the Bay Area, did not immediatel­y respond to a request for comment.

California legislator­s are weighing a bill that would codify and expand Dynamex’s applicabil­ity. If passed, Assembly Bill 5 potentiall­y could force Uber, Lyft and other companies to reclassify their workers as employees.

 ?? Irfan Khan / Los Angeles Times ?? Kristyn Hansen, at Stews Barber Shop in Orange County, used to work as a contractor. With the Dynamex ruling, she was classified as an employee.
Irfan Khan / Los Angeles Times Kristyn Hansen, at Stews Barber Shop in Orange County, used to work as a contractor. With the Dynamex ruling, she was classified as an employee.

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