On April 30, 2018, the California Supreme Court rendered its decision in Dynamex Operations West v. Superior Court of Los Angeles. This ruling may very well be the death knell of independent contractor (IC) status in real estate, not only in California, but possibly throughout the country.
The Dynamex decision instituted the ABC or three-factor test of independent contractor status in California, replacing the more complicated multi-factor Borello test.
The headlines about this ruling have been sensational: Akerman’s HR Defense blog says, “Say Goodbye to Independent Contractors.”
Rob Hahn led with “The Real Estate Apocalypse Starts with ABC” and went on to say, “Mass layoffs coming to California real estate soon.”
Does the shift to the ABC test really mean the end of IC status?
Given that a number of states have used the ABC test for IC status for decades, this decision would simply seem to be a simplification of the 20-factor Borello test that had been the standard in California.
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