Proposition 22 and the Gig Economy: Wage Requirements, Health Stipends, Removal of Noncompetes

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Employment and Workers Comp
- event Date
Wednesday, March 24, 2021
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will guide employment counsel, gig businesses, and those businesses relying on gig workers to address the legal issues that arise from the passage of Proposition 22 in California. The panel will address the issues of wage and hour requirements, the requirements related to payment of health insurance stipends, and the restrictions to noncompetes and other restrictive covenants. The program will examine how this change to the gig economy impacts employers across multiple industries on worker classification, state and federal regulations, and exemption issues.
Faculty

Ms. Bressman represents the interests of employees, retirees, plan participants, and beneficiaries in ERISA class action lawsuits across the country. Prior to joining Cohen Milstein, she was an associate at a highly regarded national plaintiffs’ law firm, where she represented clients in employee benefits/ERISA and employment law class actions. Ms. Bressman is an adjunct faculty member at the University of Minnesota Law School, where she teaches a Law in Practice course. She also speaks frequently on ERISA, wage theft and employment law topics in continuing legal education programs.

Ms. Dailo counsels and represents employers in discrimination, wage-and-hour, and non-compete and trade secret matters.
Description
When Prop 22 was passed, there was concern from businesses over the threat of losing the ability to utilize independent contractors (ICs). Would this destroy the IC model of business? Does this new law create an entire third rail of employment categorization?
Employment counsel needs to be aware of the restrictions and requirements of Prop 22, particularly in the event businesses want to take advantage of the legislation. Prop 22 is limited to businesses that use apps. Prop 22 exempts these businesses from AB 5, a 2019 California law that codified the California Supreme Court's "ABC" test used to determine employee vs. independent contractor classification.
Prop 22 also changes how wages are established for gig workers and when and how much of a healthcare stipend must be paid for classified workers. Counsel must be prepared to address when a gig worker meets the requirements of Prop 22 and how a business must amend its practices to meet these obligations.
Listen as our expert panel discusses the employment law changes outlined in Prop 22, which are likely to be introduced in other state legislatures soon. The panel will provide best practices for establishing compliant policies related to Prop 22.
Outline
- History of Prop 22
- Applicable businesses regulated
- Applicable workers regulated
- Control and flexibility of drivers
- Restriction on noncompetes
- Structures of compensation
- Healthcare stipend
- The future of the gig economy
Benefits
The panel will review these and other relevant topics:
- What businesses are governed under Prop 22? Which workers in those businesses are governed under Prop 22?
- What rights do workers have to establish schedules? Are noncompetes enforceable against gig workers?
- How is compensation structured under Prop 22? When is overtime applicable?
- What type of healthcare stipend is owed to gig workers under Prop 22?
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