Despite AB5 Pause, California Team Drivers Continue “Truck-Friendly” Relocation Search

By | Business, class action lawsuit, Independent Contractor, Misclassification

Truckers are forced to relocate to survive financial hardship. Freight Waves reports below:

California natives Jeff and Elyse Fink are still planning to relocate, but say a federal judge’s pause on the new sweeping labor law, AB5, that was set to take effect in January, has given them a little more time to plan their exit strategy.

“We are continuing with our plans to sell and relocate,” Jeff Fink told FreightWaves. “We want to be in a state that is truck friendly and California has proven to be an anti-truck state.”

The Finks, who currently live in Victorville, California, are team drivers leased to Long Haul Trucking of Albertville, Minnesota. In December, the carrier notified the Finks that they were not going to be able to dispatch them with loads leaving California unless they moved out of the state. Read entire article.

New Jersey Enforces $250 per Employee, Increasing to $1,000 Subsequent Violations

By | Business, Human Resources, Independent Contractor, Misclassification, Payroll

Companies that misclassify independent contractors are now subject to increased fines and penalties. Can businesses afford $250 per employee for a first violation and up to $1,000 per employee for subsequent violations? To make matters worse, misclassified employees can be paid up to 5% of the worker’s gross earnings for the past year, and when you need to lay off workers to downsize, mandatory severance pay will break the bank. These major changes are effective immediately in New Jersey, read ReedSmith’s article here.

Women Workers and Employers Lose Under CA Legislation

By | Business, class action lawsuit, Discrimination, Employment, Independent Contractor, settlement

Forbes details how women strongly oppose California AB5 and similar laws under consideration in New York and New Jersey.

For example, the American Society of Journalists and Authors filed a lawsuit challenging AB5 on grounds it is unconstitutional and discriminatory, and effectively argues the law is particularly harmful to women, people of color and the LGBTQ+ community.

NJ Legislation Combats Employers Who Misclassify

By | Business, class action lawsuit, Employment, Human Resources, Independent Contractor, Misclassification

Governor Phil Murphy signed a legislative package combatting worker misclassification and exploitation. The bills will crack down on employee misclassification in businesses by allowing stop-work orders against employers violating state wage, benefit, and tax law; providing assessment of penalties for violations in connection with misclassification of employees; and requiring employers to post a notice for their employees regarding employee misclassification, among others. Read about this sweeping legislation and mitigate your risks.

$20M Enforcement vs Large Gig Economy Companies

By | Advice, Business, Human Resources, Independent Contractor

The Stanford Daily reports California Governor Gavin Newsom announced his intention to budget more than $20 million to enforcement of Assembly Bill 5 (AB 5), known informally as the “gig-economy bill.” It most notably targets Bay Area tech giants like Uber and Lyft, requiring them to give their workers’ benefits that those employees would usually receive. AB 5 was signed into law in September and took effect on Jan. 1. See more details.

Independent Contractor Laws Stayed, TROs Filed

By | Business, Human Resources, Independent Contractor

January 7, Lilah Sutphen reported: as expected, two new California laws relating to arbitration and independent contractor status that were set to take effect on January 1, 2020 were promptly challenged in court as unconstitutional. District courts have already issued temporary restraining orders blocking the laws from taking full-effect immediately.  Continue reading more details in her post which summarizes each law, the legal challenges made, and the current status of the law.