Dynamex Independent Contractor Holding Applies Retroactively.
Janitors who purchased unit franchises from master franchisors filed putative class action alleging that janitorial cleaning business that entered into franchise agreements with master franchisors used its multi-leveled franchise model to misclassify them as independent contractors, rather than employees. The Northern District of California entered summary judgment in favor of the business, and the janitors appealed. The 9th Circuit certified the question of whether Dynamex Operations West, Inc. v. Superior Court (2018) applies retroactively to the California Supreme Court.
The CA Supreme court held that Dynamex applied retroactively, reasoning that the three elements of the ABC test were already prominent factors that were used to classify independent contractors. Therefore, Dynamex and its ABC test applies to cases not yet final as of the date the decision in Dynamex became final.