Dynamex Operations West, Inc. v. Superior Court of Los Angeles County

416 P.3d 1 (2018)

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Dynamex Operations West, Inc. v. Superior Court of Los Angeles County

California Supreme Court
416 P.3d 1 (2018)

Facts

Dynamex Operations West, Inc. (Dynamex) (defendant) was a same-day-delivery company. To save on labor costs, Dynamex reclassified its delivery drivers as independent contractors instead of employees. Drivers had to provide their own vehicles and pay their own taxes and insurance. Dynamex provided customers, set delivery rates, and dispatched drivers. Drivers could set their schedules but had to notify Dynamex in advance which days they would work. Driver Charles Lee (plaintiff) brought a class action claiming Dynamex drivers were employees under California labor laws. The trial court certified a class of drivers who did not work for other companies or private customers and did not have other drivers work for them. The appellate court affirmed the class for claims relating to the state wage-order laws only. The appellate court remanded the non-wage-order claims for additional consideration under a different employment test. The California Supreme Court agreed to review the correct test, under the state’s wage-order laws, for whether a worker was an employee or an independent contractor.

Rule of Law

Issue

Holding and Reasoning (Cantil-Sakauye, C.J.)

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