David P. Mastagni Interviewed About Independent Contractor Ruling

Earlier this year, the California Supreme Court cracked down on companies taking advantage of workers by calling them independent contractors when they're really employees.  Before the ruling, many employers claimed their employees weren't really employees at all, meaning they did not have any right to overtime or could be fired if they got sick, for example.  This Court's ruling means employers can't shirk their responsibilities for overtime, unemployment insurance, workers' compensation, payroll taxes, the right to join a union, and other benefits of employment status.

Mastagni Holstedt founding partner David P. Mastagni was interviewed in response of some companies objection the ruling hurts their profits.  He explained calling employees independent contractors "is cheap and they're cheap and they want to make a greater profit on the back of someone else.  But he explained, "after this case, there's a glimmer of hope and responsible employers will embrace it."  Watch the full interview at https://sacramento.cbslocal.com/2018/09/13/independent-contractors-whats-next-california/.

In Dynamex Operations West v. Superior Court of Los Angeles, the Court held workers only count as independent contractors if "(A) that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact; (B) that the worker performs work that is outside the usual course of the hiring entity’s business; and (C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.”

Court of Appeal Denies Unemployment Benefits to Employee Discharged for Dishonesty

On September 12, 2014, the California Court of Appeal in Irving v. California Uninsurance Appeals Board denied a school district employee unemployment benefits because he was discharged for misconduct. The court found the employee took excessive breaks on four occasions and falsified time records.

Unemployment Insurance Code section 1256 disqualifies employees for unemployment benefits if the employee has been discharged for misconduct. Here, the employee admitted taking four different breaks exceeding the allowable 50 minutes. He also admitted falsely reporting his break time on the District's time records. The court disregarded that other employees had also taken breaks longer than 50 minutes. The court stated it is "legally irrelevant" that other employees may have engaged in similar misconduct when determining eligibility for unemployment benefits because of the dishonesty allegation.