Seyfarth Shaw LLP | www.seyfarth.com Litigating CA Wage & Hour and Labor Code Class Actions (22nd Edition) i Table of Contents I. Introduction and Overview......................................................................................... 1 II. Common Exempt Misclassification Claims .............................................................. 2 A. Overview of State Overtime Law................................................................................ 2 B. The Executive (Managerial) Exemption...................................................................... 3 C. The Administrative Exemption.................................................................................... 7 1. General Overview ........................................................................................ 7 2. California Develops a Unique Interpretation of the Administrative/Production Dichotomy ..................................................... 8 3. The Administrative/Production Dichotomy Test Survives—Harris v. Superior Court ............................................................. 10 4. The Ninth Circuit Makes a Mountain out of the Administrative/Production Dichotomy Molehill ............................................ 11 D. The Outside Sales Exemption.................................................................................. 12 E. The Commissioned Salesperson Exemption ............................................................ 15 III. Independent Contractor Classification................................................................... 16 A. Dynamex Decision ................................................................................................... 16 1. Freedom From Control and Direction of the Hiring Entity................................................................................................ 18 2. Outside the Usual Course of the Hiring Entity’s Business .................................................................................................... 18 3. Customarily Engaged in an Independent Business .................................................................................................... 19 B. Post-Dynamex Cases .............................................................................................. 19 1. Curry v. Equilon Enterprises, LLC: Application of Dynamex to Joint Employer Analysis ......................................................... 19 2. Garcia v. Border Transportation Group, LLC .............................................. 20 3. Retroactivity of Dynamex: Vazquez v. Jan-Pro Franchising International, Inc. and Gonzales v. San Gabriel Transit .................................................................................... 20 C. Addition of the ABC Test to the Labor Code............................................................. 21 D. The Battle Over AB 5 ............................................................................................... 22 1. California Trucking Ass’n v. Bonta: AB 5 Enforced as to Motor Carriers .................................................................... 22 E. California Voters Adopt Proposition 22..................................................................... 23
RkJQdWJsaXNoZXIy OTkwMTQ4