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Arbitration Clause Doesn’t Bind State Agencies

The First District Court of Appeal rejected claims by Uber and Lyft that the arbitration provisions in their driver contracts also apply to the employee misclassification cases the California Labor Commissioner and various local jurisdictions are pursuing through the courts. The Court of Appeal’s unanimous decision in the consolidated cases upholds a lower court’s finding … Read More »

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San Francisco Sues Hospitality Company Over Worker Misclassification

San Francisco City Attorney David Chiu is suing Qwick Inc. for allegedly misclassifying restaurant and hospitality workers as independent contractors and denying them minimum wage, overtime pay, paid leave, and workers’ comp coverage. The city also has an ongoing misclassification lawsuit against Uber and Lyft for classifying its drivers as independent contractors instead of employees. … Read More »

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Instacart IPO Notes Workers’ Comp Risks

One of the major players in the app-based, on-demand delivery services space is going public. However, its registration statement warns investors that classification disputes and workers’ compensation issues could ultimately pose a risk to its operations. Instacart notes in the prospectus that it already paid $46.5 million to settle one misclassification lawsuit, and the 600,000 … Read More »

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DoorDash Classification Dispute

The question at hand is whether DoorDash’s operations fall under the web-based development classification 8859 or the more general clerical and telecommuter classes 8810 and 8871. But there is too a third possible classification if the contractors who actually deliver the food become reclassified as employees under AB5. DoorDash and the Workers’ Compensation Insurance Rating … Read More »

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SCOTUS Rejects Another AB 5 Challenge

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Truckers Challenge AB 5 After Contract Cancelled

The California Trucking Association and the Owner-Operator Independent Drivers Association expanded their legal arguments challenging California’s AB 5 legislation and the ABC test for differentiating independent contractors from employees. The amended complaints add an equal protection clause component to their arguments. The legal wranglings come as independent owner-operators protest in Downtown Los Angeles after the … Read More »

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AG Seeks Rehearing In Loss On AB 5 Challenge

California Attorney General Rob Bonta is petitioning the Ninth Circuit Court of Appeal for a panel rehearing or an en banc review of the court’s March decision to reinstate a constitutional challenge to AB 5 (for past coverage, see Courts Revive…). The petition takes on national importance as Congress considers the ProAct, legislation similar to … Read More »

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Hearing In DoorDash Classification Dispute

The California Department of Insurance’s Administrative Hearing Bureau held an oft-delayed evidentiary hearing into DoorDash’s appeal of the Workers’ Compensation Insurance Rating Bureau’s classification assignment of the operations at its headquarters. In dispute is the seven-fold difference in the rate for the classification the WCIRB assigned to DoorDash’s operations versus what the company claims its … Read More »

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