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Pasadena California Business & Commercial Law Blog

The Uber Business Model Continues to Take Hits Across the Country

As we've covered in detail on this blog, the gig economy, particularly companies like Uber, have been struggling to defend their independent contractor model of hiring. This has been particularly prevalent in California with Dynamex and the passage of AB 5 that followed. Now, New Jersey is the latest state to take aim at Uber.

The New Jersey Department of Labor and Workforce Development recently demanded Uber pay $649 million for unpaid employment taxes, stating that the company misclassified its drivers as independent contractors. Uber is, of course fighting the determination made by the Department.

Companies Fighting Back Against AB5

California's recent passage of AB 5 has caused waves across the state's employment market. However, the passage of the bill is clearly not the final word. There are likely legal challenges to come and, beyond this, the companies most directly targeted by the bill are already fighting back.

One step in the fight was taken by Uber, Lyft, and DoorDash with a $90 million effort for a ballot measure to exempt them from the legislation. The ballot measure had been discussed prior to AB 5's passage but is now taking shape with the law set to go into effect.

Big Businesses Compete to Go Green in Effort to Win Over Consumers

In an increasingly difficult retail market, companies are constantly looking for ways to attract customers. One of the latest efforts is seeing big business going green to win over consumers.

With a growing call to limit our impact on the environment, companies like Target and Walmart are looking to get on board, with hopes of using green efforts to bring in customers. One step toward this is Target's announcement that it will install solar panels at 500 of its stores in the United States. Target's plan is meant to compete with Walmart, which is implementing its own plans to be more environmentally friendly, while also responding to a customer base that has indicated an importance in seeing the companies they shop at take action on this issue.

California Expands the Reach of Dynamex ABC Test with AB 5

As covered on this blog, California has been taking steps to limit the classification of workers as independent contractors. While this has taken on different forms, including the monumental Dynamex decision, the state legislature recently finalized its own measure with the passage of AB 5 to codify the ABC test set forth in Dynamex. The passage of the bill largely overhauls employment law across the state.

The bill is plainly meant to target the continually growing gig economy, particularly companies like Uber and Lyft. However, the law has far-reaching implications for workers across a number of industries, including health care workers and truck drivers.

California Takes Aim at Employee Arbitration

As covered in previous blog posts, arbitration agreements in employment contracts have faced potential upheaval over the past year. Now California looks to make its own mark on the issue.

A new California bill looks to be ready for the Governor's signature and, should it become law, it will drastically alter employees' rights when negotiating contracts with their employers. The bill would limit employers' ability to insert mandatory arbitration clauses in their agreements with their employees, allowing the employee to reject the clause. The bill would also prevent the possibility of the job candidate losing the job offer for declining the provision.

California Continues Push Back Against Gig Economy Employment Practices

As discussed on this blog, California seems to be taking the lead nationwide in responding to companies like Uber and Lyft and their practices in classifying their workers. Initially, the Dynamex decision had the courts taking the lead, but more recently California's Bill Assembly Bill 5 looks to do away with worker classification practices the State disapproves of.

AB 5 looks to be propelling forward in legislature, with Governor Gavin Newsome recently backing the bill, as well as it recently clearing a fiscal committee in the Senate. While the bill seems to target companies like Uber, it will undoubtedly have a wide-ranging impact across industries, including truck drivers.

Trucking Companies May See Relaxation of Work Hours Rules

With some in the trucking industry pushing for changes to the time truck drivers are legally permitted to spend behind the wheel, the Federal Motor Carrier Safety Administration recently announced propose changes to address this desire.

Dynamex Decision Could Rock the Employment Market Even More than Initially Thought

As discussed on this blog, the Dynamex court decision has evolved since it first came down last year, with its overall impact on the employment market still being determined and understood. The latest in this line could have an extraordinary impact on many industries.

Will Uber and Lyft Change California's Labor Market?

The effort to define who is an employee and who is an independent contractor has been an ongoing battle in California, particularly since the Dynamex decision that came down from the California Supreme Court last April. While the full impact of the decision in the courts is still being seen, it is no surprise that the issue is now being taken up by California's legislative branch as well.

Big Retailers Test Customer's Desire for Convenience

As covered on this blog, online sellers and brick and motors continue a back and forth struggle for business. Recently, large retail sellers Amazon and Walmart have looked to add a new level of convenience to online shopping that could provide a breakthrough, if consumers are in fact open to the idea.

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