Seyfarth Shaw LLP | www.seyfarth.com Litigating CA Wage & Hour Class and PAGA Actions (23rd Edition) i Table of Contents I. Introduction and Overview ..............................................................................................1 II. Common Exempt Misclassification Claims ..................................................................3 A. Overview of State Overtime Law ..............................................................................3 B. The Executive (Managerial) Exemption ....................................................................4 C. The Administrative Exemption..................................................................................9 1. General Overview.......................................................................................9 2. California Develops a Unique Interpretation of the Administrative/Production Dichotomy ....................................................9 3. The Administrative/Production Dichotomy Test Survives—Harris v. Superior Court ........................................................... 12 4. The Ninth Circuit Makes a Mountain out of the Administrative/Production Dichotomy Molehill ...........................................13 D. The Outside Sales Exemption................................................................................14 E. The Commissioned Salesperson Exemption...........................................................16 III. Independent Contractor Classification .......................................................................19 A. Dynamex Decision.................................................................................................19 1. Freedom From Control and Direction of the Hiring Entity..............................................................................................20 2. Outside the Usual Course of the Hiring Entity’s Business .................................................................................................. 20 3. Customarily Engaged in an Independent Business .................................................................................................. 21 B. Post-Dynamex Cases ............................................................................................21 1. Curry v. Equilon Enterprises, LLC: Application of Dynamex to Joint Employer Analysis ........................................................21 2. Garcia v. Border Transportation Group, LLC ............................................. 22 3. Retroactivity of Dynamex: Vazquez v. Jan-Pro Franchising International, Inc. and Gonzales v. San Gabriel Transit................................................................................... 23 C. Addition of the ABC Test to the Labor Code............................................................23 D. The Battle Over AB 5.............................................................................................24 1. California Trucking Ass’n v. Bonta: AB 5 Enforced as to Motor Carriers...................................................................24 E. California Voters Adopt Proposition 22 ...................................................................25
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