Becerra v. McClatchy Co.
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In 2004-2010, all the carriers signed a contract with The Fresno Bee to provide newspaper home delivery services, titled, “Independent Contractor Home Delivery Distribution Agreement.” In a class action alleging violation of the unfair competition law (UCL) (Bus. & Prof. Code 17200), the trial court determined the carriers were independent contractors and entered judgment in favor of The Bee.
The court of appeal reversed. Whether the carriers are employees or independent contractors must be determined under the Borello test; the trial court erred in deferring to the Employment Development Department regulations, which are inapplicable. The trial court failed to properly analyze the factors required by Borello. There were disputed issues of fact concerning the newspaper’s right to control necessary operations, as well as secondary factors. The court declined to resolve whether the carriers are employees or independent contractors, and instead remanded for the trial court to address the issue.
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