California Governor Jerry Brown has signed into law a number of bills addressing a wide array of issues that could significantly impact employers in the coming year. Read on for an overview of some of these new laws and their key provisions.
independent contractor
Freight Pick-Up Drivers May Have Been Employees And Not Independent Contractors
Narayan v. EGL, Inc., 616 F.3d 895 (2010)
Mohit Narayan and two other drivers for EGL (a global transportation, supply chain management and information services company headquartered in Texas) were California residents who provided services to EGL pursuant to independent contractor agreements that contained a Texas choice-of-law provision. Narayan and the other drivers filed a lawsuit against EGL in California alleging they were in fact employees of EGL who were deprived of overtime wages, reimbursement for business expenses, meal compensation, etc. EGL removed the case to federal court and obtained summary judgment after the district court applied Texas law and concluded plaintiffs were independent contractors and not employees. The district court also concluded the result would be the same under California law.
Dump Truck Owner Involved In Collision May Not Have Been A City Employee
Bowman v. Wyatt, 186 Cal.App.4th 286 (2010)
Plaintiff Barry A. Bowman filed this case after suffering devastating injuries when his motorcycle collided with a dump truck owned and operated by Tommie Wyatt, Jr. The collision occurred shortly after Wyatt had delivered a load of asphalt to a work site of the City of Los Angeles with which Wyatt was under contract. The jury found that Wyatt was an employee of the city and returned a verdict in Bowman’s favor in the amount of $15.7 million. On appeal, the city argued that the trial court had misinstructed the jury on the factors it should consider in determining whether Wyatt was an employee or independent contractor of the city.
Start-Up Company Owned Source Code That Was Developed By Employee
JustMed, Inc. v. Byce, 600 F.3d 1118 (9th Cir. 2010)
Michael Byce developed the source code used in the software of a digital audio larynx device that JustMed owned. JustMed contended that Byce was its employee when he developed the code and that the code, therefore, belonged to JustMed under the work-for-hire doctrine of the federal Copyright Act. Byce, however, contended he was an…
Injured Gardener Was Not An Employee Covered By Workers’ Compensation
Lara v. WCAB, 182 Cal.App.4th 393 (2010)
The Metro Diner hired Luis Lara as a gardener twice during a 12-month period to prune the bushes around the diner. Lara fell off the roof of the diner while pruning the bushes and injured his head, back, neck and other parts of his body. After the fall, Lara filed a workers’ compensation claim against Metro and…
Messengers Were Independent Contractors And Not Employees
Cristler v. Express Messenger Systems, Inc., 171 Cal. App. 4th 72 (2009)
James Cristler and others sued Express Messenger, a parcel delivery service, for violations of California law based upon Express’ allegedly illegal classification of its workers as independent contractors and not employees. Among other things, plaintiffs alleged violations of the California overtime requirements, as well as requirements to properly itemize wages and to…
Independent Contractor’s Wrongful Termination Lawsuit Was Properly Dismissed
Varisco v. Gateway Science & Eng’g, Inc., 166 Cal. App. 4th 1099 (2008)
Gateway engaged Al Varisco to provide construction inspection services on two projects it was doing for the Los Angeles Unified School District (“LAUSD”). Gateway retained Varisco pursuant to a letter agreement whereby he was to be paid $75 per hour for the inspection services, which he performed directly for the LAUSD.…
Package Delivery Drivers Were Employees, Not Independent Contractors
Air Couriers Int’l v. Employment Dev. Dep’t, 150 Cal. App. 4th 923 (2007)
Sonic Couriers of Arizona (Air Couriers’ predecessor) filed a complaint for refund against the Employment Development Department (EDD) to recover employment taxes it paid for its drivers, which Sonic contended were independent contractors and not employees. Among other things, the EDD established that Sonic provided the drivers with pick-up and delivery…
State Farm Breached Independent Contractor Agreement By Imposing Trade Secret And Non-Solicitation Restrictions
Patricia Adkins Ins. Agency, Inc. v. State Farm Mut. Auto. Ins. Co., 146 Cal. App. 4th 526 (2007)
The Court of Appeal granted declaratory and injunctive relief to independent contractor agents of State Farm who challenged certain trade secret and non-solicitation restrictions that State Farm sought to impose upon the agents’ employees. The agents challenged the restrictions on the ground that they constituted a…
Temporary Insurance Adjusters Are Not Permitted To Proceed With FLSA Class Action
Pfohl v. Farmers Ins. Group, 2004 WL 554834 (C.D. Cal. Mar. 1, 2004)
Thomas Pfohl filed this putative class action for unpaid overtime under the Fair Labor Standards Act (FLSA) on behalf of himself and all other similarly situated individuals who worked for Farmers as temporary full-time insurance adjusters. In this proceeding, the District Court denied Pfohl’s Motion for Certification of Collective Action. Pfohl…