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HR-125 (2017-2018)

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HR125:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

House Resolution
No. 125


Introduced by Assembly Member Melendez

August 27, 2018


Relative to the decision in Dynamex Operations West, Inc. v. Superior Court, regarding independent contractors.


LEGISLATIVE COUNSEL'S DIGEST


HR 125, as introduced, Melendez.

WHEREAS, On April 30, 2018, the California Supreme Court overturned three decades of California employment law that allowed individuals to work as independent contractors; and
WHEREAS, This decision has imposed a far more restrictive criteria on workers, and created severe economic insecurity and hardships for Californians and nearly every industry in this state; and
WHEREAS, Nearly two million Californians choose to work independently, either full time or to supplement their primary incomes; and
WHEREAS, These workers include engineers, software developers, therapists, accountants, writers, hair stylists, drivers, artists, construction workers, and emergency room doctors; and
WHEREAS, California has over 76,000 franchise locations that support nearly 730,000 jobs; and
WHEREAS, According to the United States Bureau of Labor Statistics, about 1 in 14 workers are independent contractors nationally; and
WHEREAS, Nearly one-half of all millennials (47 percent) across the United States freelance, which is a 9 percent increase since 2014; and
WHEREAS, The Dynamex decision bypasses a legislative discussion about how best to balance worker protections with a flexible work model; and
WHEREAS, The Dynamex decision will subject businesses in California to a standard that is tougher than that of the federal government or most states; and
WHEREAS, In July 2018, business leaders sent a letter to the Governor warning that the new test created by the Dynamex decision would “decimate businesses;” and
WHEREAS, The business community has urged the Governor and Legislature to limit the court’s ruling to apply only to workers involved in the Dynamex case and asked that the decision not apply to other contractors for the next two years; now, therefore, be it
Resolved by the Assembly of the State of California, That the Assembly of the State of California urges an immediate suspension of the Dynamex decision; and be it further
Resolved, the Assembly of the State of California urges the Governor to call a special session in response to the Dynamex case to address: (1) Steps forward in responding to the Dynamex case, (2) Limiting the court’s ruling to only workers involved in the Dynamex case, and (3) Providing that the decision not apply to other contractors for the next two years; and be it further
Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the author for appropriate distribution.