Shegerian & Associates: Federal Court Rules on California Independent Contractors Decision

NEW YORK and LOS ANGELES, May 13, 2019 /PRNewswire/ -- The Ninth Circuit Court of Appeals ruled that a lower court ruling establishing a test for how workers can be considered independent contractors applies to past cases as well.

On Tuesday April 30, Judge Frederic Block wrote the court's majority opinion in case involving business franchiser Jan-Pro.  In making the case retroactive, employers are subject to liability for misclassifying workers as contractors, potentially going back four years. The test replaced a multifactor analysis that made it easier for companies to argue workers should be classified as contractors.

The California Supreme Court found that in order to prove that a worker is not a formal employee, a business must show that the worker has freedom from control over how to perform the services provided; that the services are outside the business' normal variety or workplace; and that the worker is engaged in an independently established role. In 2007, workers in several states filed lawsuits against Jan-Pro alleging that they were being misclassified as independent contractors.

Jan-Pro had originally sought to prevent these lawsuits in court. April's ruling now opens the door for the complaints to be filed. Judge Block wrote in the opinion that by applying the test retroactively, the court is respecting the California's Supreme Court's interests. The judge says that the decision ensures that workers are able to provide for themselves and their families, as well as protects the janitorial industry by placing Jan-Pro on equal footing with similar industry participants. According to its attorney, Jan-Pro will petition for a re-hearing on the issue.

Carney Shegerian, the founder of Los Angeles-based employee rights law firm Shegerian & Associates, and Naranjo's attorney, has weighed in on the ruling.

"This ruling is a win for working people everywhere," Shegerian says. "Everyone should be able to make a living wage."

About Shegerian & Associates:
Shegerian & Associates has won clients over $300 million in employment-based disputes and maintains a 98% success rate. We have offices in Los Angeles, San Diego, Riverside and New York. 

Media Contact:
Pace Public Relations
Kara Ryan
[email protected]

SOURCE Shegerian & Associates

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