A unanimous decision Monday by the California Supreme Court appears to require companies like Uber and Lyft to treat their drivers as employees, who must therefore be paid no less than the state's minimum wage and be reimbursed for their vehicle expenses. In Dynamex Operations West v. Superior Court, the court simplified and clarified the rules governing which workers are “employees” protected by state wage and hour law rather than unprotected “independent contractors.”
In an 80-page opinion, the court adopted for California the so-called “ABC Test,” a rule already in use in Massachusetts and New Jersey, which is more employee-protective than the old California law or some federal laws. Under the ABC test, workers are presumed to be employees protected by law requiring payment of the state minimum wage and premium pay for overtime hours.
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