JL_risklogo.png

Workers Comp Audit Stress Reducer
Use It For Your Next Premium Audit

California Workers Comp Contractor Vote – Prop 22 on Ballot

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Uber or Lyft Driver – California Workers Comp Contractor vs Employee – Prop 22

One of the most heated online and in-person (before COVID-19) debates that I had witnessed in California – Is an Uber or Lyft driver a California Workers Comp Contractor or an employee?

picture antique taxi california workers comp contractor
Public Domain – Wikimedia Commons

Some of the most widely read J&L articles over the last year came from the passage of California AB 5.   AB 5 slammed the door on gig workers as independent contractors.

From a prior article –

The California Supreme Court retooled the contractor-subcontractor relationship into three points of consideration: (distilled for brevity)

  1. The degree of control by the main contractor
  2. The subcontractor performs work that is not the usual work performed by the contractor 
  3. The subcontractor has a business that is independently established in the same trade from the contractor
  4. I added in this one as carriers are now including it in their workers’ comp audits – the subcontractor is not integral to the contractor’s existence.

AB 5 reiterated the infamous Dynamex decision.     The rule-of-thumb became the ABC decision on a worker’s status.   The ABC comes from the first three in the above list.

Why Should You Care If You Do Not Have A Business in CA?

I have referred to this statement often when writing California-based articles.  What happens in California will be coming to a state near you or in your state.

California tends to lead the way on some of the Workers Comp decisions by other State Legislators.  For instance, not long after the Dynamex decision, Massachusetts enacted similar regulations along with many other states.

Other states have retreaded the California Workers Comp Contractor Dynamex decision many times.

Proposition 22

  1. (19-0026A1)
    CHANGES EMPLOYMENT CLASSIFICATION RULES FOR APP-BASED TRANSPORTATION AND DELIVERY DRIVERS. INITIATIVE STATUTE.  
Uber drivers in California Workers Comp Contractor can possibly worker
Wikimedia Common – ScottMLiebenson

Establishes different criteria for determining whether app-based transportation (rideshare) and delivery drivers are “employees” or “independent contractors.” Independent contractors are not entitled to certain state-law protections afforded employees—including minimum wage, overtime, unemployment insurance, and workers’ compensation. Instead, companies with independent-contractor drivers will be required to provide specified alternative benefits, including minimum compensation and healthcare subsidies based on engaged driving time, vehicle insurance, safety training, and sexual harassment policies. Restricts local regulation of app-based drivers; criminalizes impersonation of such drivers; requires background checks. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments

California Workers Comp Contractor Vote Results

I will return to this article and update it or write a new one after the vote on Prop 22.  One would have to think the results will affect other California contractors and possible employers and contractors nationwide.

 

©J&L Risk Management Inc Copyright Notice

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Table of Contents

Related...

James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

Subscribe

Get the latest workers' comp news FREE!

Name
This field is for validation purposes and should be left unchanged.