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SF Chronicle prints CMTA opinion on Dynamex, flexibility in workplace

Posted by Gino DiCaro, VP, Communications on March 26, 2019

 

Last week the San Francisco Chronicle printed the following opinion by CMTA president Lance Hastings on the need for flexibility in the ever-evolving manufacturing workplace and overall California economy. 

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OPINION
Open Forum: Workers, the economy, win with flexibility in the workplace
Lance Hastings in San Francisco Chronicle -- March 19, 2019
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California’s success in the new and rapidly evolving economy will be driven by innovation, technical skills, leading-edge workplace cultures and our policymakers’ willingness to modernize our employment laws. The recent ruling by the California Supreme Court on Dynamex Operations West vs. Superior Court of Los Angeles County however is an antiquated way to impose labor rules. It will put California at a severe competitive disadvantage among the other 49 states.


The Legislature and employer community are reacting differently to the state Supreme Court’s unanimous decision, which concluded that independent contractors must be considered employees if they can’t pass a three-factor litmus test (see box below). This “ABC test” makes it nearly impossible to classify a worker as an independent contractor, and the hardest part is that you can’t hire someone to perform similar duties to that of your employees. If the worker’s situation doesn’t pass the “ABC test,” then the hiring companies must comply with the web of employment laws and regulations relating to minimum wage, overtime, withholding payroll taxes, unemployment benefits and insurance plans. 



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