Gonzales v. San Gabriel TransitAnnotate this Case
Plaintiff filed a putative class action against SGT, alleging that SGT violated various provisions of the Labor Code and Industrial Welfare Commission's (IWC) wage orders by misclassifying drivers as independent contractors. While this appeal was pending, the California Supreme Court decided Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal.5th 903, in which it adopted the "ABC test" used in other jurisdictions to streamline and provide consistency in analyzing the distinction between employees and independent contractors for purposes of wage order claims.
The Court of Appeal held that the the ABC test adopted in Dynamex is retroactively applicable to pending litigation on wage and hour claims; the ABC test applies with equal force to Labor Code claims that seek to enforce the fundamental protections afforded by wage order provisions; and statutory claims alleging misclassification not directly premised on wage order protections, and which do not fall within the generic category of "wage and hour laws," are appropriately analyzed under what has commonly been known as the Borello test. Accordingly, the court reversed and remanded.