![]() ![]() It is important employers understand the implications and consequences of how they classify workers, regardless of the industry. The Ninth Circuit’s ruling serves as an important reminder for employers in California that the ABC Test remains good law. ![]() The Ninth Circuit concluded the plaintiffs “were not unfairly burdened by the application of the ABC test to their doorknockers and signature gatherers” and the trial court’s denial of preliminary injunction was appropriate. The appeals court also stated the indirect impact of Assembly Bill 5 on speech did not violate the First Amendment, holding the ABC Test does not target certain types of speech as the law applies uniformly across California’s economy, unless an occupational exemption exists. The Ninth Circuit stated the ABC Test ‘applies across California’s economy’ and therefore, plaintiffs are not unduly burdened by the test being applied to their doorknockers and signature gatherers. Upon review, the Ninth Circuit addressed plaintiffs’ argument regarding the potential economic impact the ABC Test would have on plaintiffs. The district court denied plaintiffs’ request for preliminary injunction and plaintiffs sought review by the Ninth Circuit Court of Appeals. The district court disagreed with plaintiffs’ contention that Assembly Bill 5 violated the First Amendment, finding Assembly Bill 5 does not impose content-based restrictions on speech and is a “generally applicable law” that regulates classifications of employment relationships by industry, not by speech. Plaintiffs also argued that while direct salespersons, newspaper distributors, and newspaper carriers are exempted from Assembly Bill 5 and the ABC Test, the application of the ABC test to their doorknockers and signature gatherers increased the likelihood the doorknockers and signature gatherers would be classified as employees which would then cause plaintiffs to incur additional expense potentially limiting prospective clients from using plaintiff’s services. Plaintiffs filed a request for preliminary injunction of Assembly Bill 5 in the United States District Court for the Central District of California, claiming the bill violates the First Amendment because it discriminates against speech based on content. The plaintiffs included: Mobilize the Message, LLC, a company that provides signature gathering and door knocking services to political campaigns Moving Oxnard Forward, Inc., a nonprofit organization that creates and enacts ballot measures and the Starr Coalition for Moving Oxnard Forward, a political committee. The group of plaintiffs did not want the doorknockers and signature gatherers they hired to be classified as employees. In Mobilize the Message, LLC, a group of plaintiffs appealed a district court’s denial of a preliminary injunction with the goal of restraining the California Attorney General from applying the ABC Test. If one of the factors is not met, the worker is considered an employee and is entitled to benefits such as minimum wage, and overtime pay. All three factors must apply for a worker to be considered an independent contractor. “ The ABC Test examines three factors when determining whether a worker should be classified as an employee or as an independent contractor: 1) does the employer have control over how the worker performs their job, including the details of the work performed and the methods used to complete the work, 2) does the work performed by the worker fall outside of the employer’s core business or main operations, and 3) is the worker customarily engaged in an independent trade, occupation, profession or business that is of the same nature as the work being performed. In 2019, the legislature enacted Assembly Bill 5 which adopted the “ABC Test. Court of Appeals for the Ninth Circuit upheld California Assembly Bill 5, which adopted the ABC Test for determining whether a worker should be classified as an employee or as an independent contractor. In a First Amendment challenge case, Mobilize the Message, LLC, et al v. Automobile & Autonomous Vehicle Liability. ![]()
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