For the last several years there's been both excitement and concern over the gig economy that seems to be growing by the day, as it starts to become the norm for more and more workers. With the explosion of companies like Lyft and Postmates, many more companies have come onto the scene. However, of late, recent news has indicated that the gig economy that is bringing a change to the way people work is still undergoing change itself.
Recently, California enacted a new law applicable to companies using temp workers. Assembly Bill 1897, codified as section 2810.3 of the California Labor Code became effective in 2015. Under the new law a company using temp workers will be liable to the workers supplied by the temp agency for wage and hour violations. Previously, a company using temp workers was only responsible for certain types of claims when it was determined to be a joint employer.
In a post last week we discussed the Fair Labor Standards Act and how it affects employees across the nation, especially in the area of fair compensation for work done. According to the federal law, all nonexempt employees must be paid overtime pay for time worked past 40 hours in a work week. But as some of you may already know, California's hour and wage laws go beyond this rule.