September 2019 Archives

California Supreme Court Holds No Wage Recovery in PAGA Claims

By: Kyle D. Kring and Kerri N. Polizzi

On September 12, 2019, the California Supreme Court in ZB, N.A., et al. v. Superior Court, No. S246711, firmly held that employees cannot collect unpaid wages under the Private Attorneys General Act (commonly known as "PAGA"). This surprising decision curtails one avenue PAGA plaintiffs and their attorneys used as a workaround when faced with enforceable arbitration agreements containing class action waivers.

As Expected, Govenor Newsom Immediately Signed Assembly Bill 5 Which Now Affects Independent Contractor Classification

By: Huy M. Tran and Kerri N. Polizzi

The following is an update from our article last week. [http://www.kringandchung.com/blog/2019/09/california-legislature-passes-new-bill-affecting-independent-contractor-classification.shtml]

On September 16, 2019, Assembly Bill 5 (AB-5) was enrolled and placed on Governor Newsom's desk. As predicted, on September 18, 2019, Governor Newsom signed AB-5 in a private ceremony in his state Capitol office.

California Legislature Passes New Bill Affecting Independent Contractor Classification

By: Huy M. Tran and Kerri N. Polizzi

On Wednesday, September 11, 2019, the California legislature passed a landmark bill known as Assembly Bill 5 (AB-5) that will reshape many companies' ability to classify workers as independent contractor. Most notably, the bill directly targets Uber and Lyft's classification of their drivers. AB-5 is now en route to the desk of Governor Newsome, whose signature would solidify the new law.

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