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The “ABC” Test As Defined In Dynamex Is To Be Applied Retroactively

The “ABC” Test As Defined In Dynamex Is To Be Applied Retroactively

May 4, 2019 by Mark H. Wagner

In Vazquez v. Jan-Pro Franchising International, Inc., the Court discussed the application of Dynamex Ops. W. Inc. v. Superior Court, 4 Cal.5th 903 (2018) and the “ABC” test.  The “ABC test” was adopted by the California Supreme Court in Dynamex.  The test requires the hiring entity to establish three elements to disprove employment status: (A) that the worker is free from the control of the hiring entity in connection with work performance – both under the performance contract and in fact; (B) that the worker performs work outside the hiring entity’s usual business; and (C) that the worker is customarily engaged in an independent business of the same nature as the work performed. The Court held that Dynamex should be applied retroactively and that applying Dynamex retroactively was consistent with due process.  The panel also held that Dynamex expanded the definition of “suffer or permit” for California wage order cases. As a result of this, it ruled that the district court should consider all three prongs of the ABC test upon remand.

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