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.
In May, the Ninth Circuit determined that the Dynamex decision could be applied retroactively. This order was recently withdrawn; however, it looks as though the California Supreme Court will take up the issue.
This determination, of course, could have an incredible impact on industries, such as trucking, that have relied extensively on independent contractor classification for its workers, but which may, under the new ABC test in Dynamex, be required to treat workers as employees.
Workers treated as independent contractors could now bring suit for past actions by these companies, companies who thought, under the old test, that they were operating properly in treating their workers as independent contractors. This of course opens up these companies to liability on a potentially large scale. This could also impact lawsuits where the workers still have an opportunity to appeal an adverse decision, which could now come out much differently if Dynamex is applied retroactively.
With the evolution of Dynamex, and the potential for new vulnerability and liability, it is important for employers to a have experienced employment and transportation lawyer on their side to navigate this new environment.