California’s AB 5 Law: Protecting California Gig Worker Rights

Many corporations that employ gig workers treat their workers as independent contractors to avoid paying them benefits and other employment protections. Fortunately, this practice is coming to an end.

The AB 5 Law

California passed a bill (AB 5) that reclassifies more gig workers as employees. Reclassified gig workers will receive benefits such as:

• A guaranteed minimum wage
• Overtime wages
• Health care benefits
• Unemployment
• Workers’ compensation
• Any other benefits that employees are guaranteed under California law

As it stands, independent contractors don’t receive any of these benefits in California. AB5 protects more gig worker rights in California than ever before.

It’s Been the Law Since 2018: Dynamex

This change in independent contractor-employee classification actually began in 2018 when the California Supreme Court ruled in a case known as Dynamex. Dynamex set forth that for a worker to be classified as an independent contractor, a business must show that the worker:

• Is free from the control and direction of the employer,
• Performs work that is outside the hirer’s core business, and
• Engages in an independently established trade, occupation, or business.

While this Dynamex test is the current California employment law, codifying this employee-contractor test through the legislature expands employee protections to all aspects of the state labor code.

Who Does AB 5 Apply To?

AB 5 applies to any gig worker or independent contractor that performs work that is the core of their employer’s business. For example, almost all grocery delivery contract workers are not likely to pass the Dynamex test since delivering groceries is the main purpose of their grocery delivery employer’s business. Companies like Shipt, Postmates, Amazon Mechanical Turk, Deliv, Puls, Opoli, Uber, Lyft, Wingz, Rev, and Market Force Information currently employ independent contractors in violation of Dynamex and AB 5.

AB 5 provides an exemption for categories of workers who are typically considered to own their own businesses: doctors, real estate agents, lawyers, dentists, insurance agents, accountants, engineers, hairstylists and barbers who rent booths, architects, and other similar positions.

Call PARRIS Employment Attorneys

If you’re a mistreated or misclassified gig worker that would like to start a free case consultation, call PARRIS at (661) 485-2072. Our employment attorneys have represented thousands of workers across California since 1985 and have recovered over $500 million in workplace lawsuits. You pay no fees until we win your case.

As an Amazon Mechanical Turk worker, are you getting paid for every minute that you work? Are you making, at the very least, minimum wage? With so many HITs paying just pennies or a dollar, the majority of Turkers are NOT making the required California state minimum wage per hour worked.

Amazon is classifying Mechanical Turk workers as independent contractors in order to avoid paying them legal wages and having to provide them with employment benefits. Amazon may argue that since Mechanical Turk provides “freelance” or “side gig opportunities” for workers that it is properly classifying them as independent contractors.

This is not the case under current California law, which provides that MTurk workers should be classified as employees, regardless of the amount of time they spend working for MTurk per week. They are entitled to receive minimum wage, payment for every minute that they work, employment benefits, and more.

California Law on Employee Classification

A 2018 California Supreme Court case known as Dynamex states that in order for a worker to be classified as an independent contractor, a business must show that the worker:

• Is free from the control and direction of the employer,
• performs work that is outside the hirer’s core business, and
• engages in an independently established trade, occupation, or business.

This Dynamex test has been the law since 2018 and was recently codified in California by the passage of AB 5, going into effect on January 1, 2020. This enables the legislature to expand employee protections to all aspects of the state labor code, rather than just the California wage orders.

Since Turkers perform work that is within Amazon Mechanical Turk’s core business, which is to complete microtasks of data validation, survey participation, content moderation, and more, they must be classified as employees. Not as independent contractors.

Employment Benefits For Amazon Mechanical Turk Workers

What does this mean for you as an Amazon Mechanical Turk worker? By being classified as an employee rather than an independent contractor, you will receive benefits such as a guaranteed minimum wage, overtime wages, health care benefits, unemployment, workers’ compensation, business expense reimbursement, and any other benefits that employees are guaranteed under California law. This means getting paid for every minute that you work and more.

Call PARRIS To Fight For What You’re Owed

Turkers can start a free case consultation by calling PARRIS at (661) 485-2072. You pay no fees until we win your case. Our employment attorneys have represented thousands of workers across California since 1985, and have recovered over $500 million in workplace lawsuits.

Rideshare drivers should be getting paid for every minute that they work, as well as having their business expenses reimbursed. Opoli treats its drivers as independent contractors in order to avoid paying them legal wages and having to provide them with business expense reimbursements and employment benefits.

California Law Classifies Opoli Drivers as Employees

In 2018, a California Supreme Court case known as Dynamex changed the law surrounding independent contractor classification in the state. In order for a worker to be classified as an independent contractor, they must pass the ABC test, which is as follows:

• The worker is free from the control and direction of the employer,
• The worker performs work that is outside the hirer’s core business, and
• The worker engages in an independently established trade, occupation, or business.

In 2019, California codified this law with AB 5, which went into effect on January 1, 2020.

The Fight Over Rideshare Driver Classification

Of course, the vast majority of rideshare companies still classify their drivers as independent contractors, which violates California law. That is, until rideshare companies funded the passage of Prop 22 in 2020. Prop 22 kept rideshare drivers (like Opoli drivers) classified as independent contractors while granting them new rights, such as a wage floor, healthcare subsidy, and a beta version of workers’ comp.

However, in August 2021, a California judge declared Prop 22 unconstitutional. This means that AB 5 is once again the law—and Opoli drivers should be classified as employees.

Benefits For Opoli Drivers

What does AB 5 mean for you as an Opoli driver? Employees in California receive benefits such as a guaranteed minimum wage, overtime wages, health care benefits, unemployment insurance, and workers’ compensation. Under California law, you are entitled to all of these and more.

If Opoli refuses to pay you what you’re owed, then you may be able to take legal action against them. Speak with a wage & hour lawyer from PARRIS to learn more about your rights.

Rideshare Drivers: Fight for Your Rights

If you’re an Opoli driver that would like to start a free case consultation, call PARRIS at (661) 485-2072. You pay no fees until we win your case. Our employment attorneys have represented thousands of workers across California since 1985, and have recovered over $500 million in workplace lawsuits.

Class certification is an order by a judge that a class action lawsuit can move forward. A class action is filed when a group of people who have had their rights violated in a similar manner come together to pursue one case against the violator. This is usually done because each individual person’s injury may be too small to make it feasible to pursue compensation through an expensive legal claim. However, a group of people can come together to file their claim, which as a whole can be substantial.

Leprino’s STATE Employment Law Violations

Interruption of Employees’ Meal and Rest Breaks

There were several practices enforced by Leprino that caused its employees to be unable to take uninterrupted meal and rest breaks, in violation of California employment law. The employees were essentially on-call during their meal and rest breaks, and had to make themselves available to respond to their employer’s requests during their break times.

Leprino enforced this by requiring some employees to carry assigned radios with them at all times, including during breaks. It also had intercoms and work phones installed in its break rooms. Employees were expected to answer any radio, phone, and intercom request during their meal and rest breaks. They were also contacted on their personal cell phones about work during meal and rest breaks. Employees were never paid for responding to these calls or for their interrupted meal and rest periods, as required by California law.

Food Production Goals and Quotas

Leprino has production goals and quotas in place at its Lemoore facility, and considers the delay of production to be “prohibited conduct.” Employees who work with the machinery have to constantly monitor and maintain it so that production goals and quotas can be met, and are disciplined for their failure to meet quotas. Some employees are regularly prevented from taking scheduled breaks because their duties require them to stay on the job.

The judge in this case ruled that over 1,400 Leprino Foods hourly-paid workers faced similar alleged violations detailed above, and can proceed in their case as a class action. The claims certified were for violations relating to: meal and rest break; off-the-clock work; overtime; minimum wage; failure to compensate for all hours worked; accurate itemized wage statements; failure to pay wages when due; and unfair competition.

“This is a phenomenal step towards recovering wages and penalties owed to our essential workers in the food production industry especially during these challenging times,” said Kitty Szeto, Partner at the PARRIS Law Firm.

PARRIS Results – Food Production Class Actions

PARRIS employment attorneys have achieved extraordinary results in class action lawsuits against food production facilities:

• $7.8 Million Settlement Against a Chicken Processing Plant
• $5 Million Settlement Against a Dairy Producer
• $5 Million Settlement Against a Fruit Processing Company
• $3.3 Million Settlement Against a Turkey Processing Plant
• $3 Million Settlement Against a Poultry Processing Facility

Questions About Worker Rights? Call PARRIS

If you are facing similar work violations or believe that your employment rights are being violated, call PARRIS Law to start your free case consultation at (661) 485-2072. We accept all cases on a contingency fee basis, so you pay no fees until we win compensation for you.