Gig Employers Lose Big as Appeals Court Applies Classification Test Retroactively

There’s no way to sugarcoat this one. Yesterday, the 9th Circuit Court of Appeals handed a big loss to gig economy companies by concluding that last year’s Dynamex decision from the California Supreme Court and its wide-reaching “ABC” test should be applied retroactively. That means the ABC test – which makes it very difficult for gig economy businesses to properly classify their workers as independent contractors rather than employees – will be applied to federal cases when evaluating relationships that businesses thought were to be judged under a much more flexible standard.

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