![]() The attorneys at Workplace Rights Law offer quality employment law representation to clients on the proper interpretation of AB5 and your rights. employees in California is complex and requires a careful review of your business relationship’s facts. However, the proper classification of independent contractors vs. Prop 22 serves to side-step AB5 specifically with respect to app-based drivers for Lyft, Uber, and others. ![]() The recent passing of AB5, also known as the “gig worker bill,” changed the classification of independent contractors in California.Īdditionally, in November 2020, Proposition 22, or the “App-Based Drivers as Contractors and Labor Policies Initiative,” passed applying specifically to app-based drivers. Misclassification happens more often than you think. If employers are taking advantage of this provision, they should ensure they are paying employees twice the new state minimum wage.Proper classification as an employee or independent contractor in California affects your rights, protections, and wages in California. However, an employee receiving wages that are at least two times the state minimum wage can be required to provide and maintain their own hand tools and equipment customarily required by the trade or craft. Generally, when tools or equipment are required by the employer or are necessary for the performance of a job, they must be provided and maintained by the employer. Tools or EquipmentĮmployers who require employees to provide their own tools or equipment may also be affected pursuant to the Industrial Welfare Commission Wage Order 16. The construction exemption to California’s paid sick leave law requires that a premium regular hourly rate of pay of not less than 30 percent more than the state minimum wage be paid to exempt employees. Paid Sick LeaveĬonstruction employers in California must provide paid sick days to their employees unless the employees are covered by a valid CBA and fall under the exemptions included in Labor Code Section 245.5. Employers should determine whether their union agreements or other procedures are affected. Under California Industrial Welfare Commission Wage Order 16, construction employers and unions are permitted to bargain hours and days of work different from those required by the Wage Order, so long as their employees are covered by a valid CBA designating wages, hours and working conditions and the employees’ regular hourly rate of pay is not less than 30 percent more than the state minimum wage. Collective Bargaining Agreements – Hours and Days of Work The following are some of the key areas the minimum wage increase may impact construction employers. Many of the exemptions afforded to construction employers’ signatory to a collective bargaining agreement (CBA) are dependent on the CBA providing for “premium” wage rates. The change in the minimum wage has a domino effect on other California employment compliance areas that are linked to the state minimum wage. Please note that some cities and counties have a local minimum wage that is higher than the state rate. Under the provisions of that law, California’s minimum wage will increase on Januto $14 per hour for employers with 26 employees or more and $13.00 per hour for employers with 25 or fewer employees.īelow is the mandated schedule to raise the State minimum wage to $15 by 2023. In 2016, California passed legislation to increase the State minimum wage to $15 per hour over time.
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