Scherer Smith & Kenny LLP serves mid-sized and fast-growing entrepreneurial companies. From complex litigation to business, real estate, intellectual property and employment law, our team brings strategic thinking, pragmatism and intense dedication to our clients’ success. Partner NotesThe three partners at our firm have been taking turns writing “Partner Notes” in each of our firm’s quarterly newsletters for close to a decade. Our marketing consultant at the time helped us create the concept, look and feel for this “Perspectives” newsletter as well as our firm brand “The Strength of Partnership.” The Partner Notes concept was designed to balance the legal news and updates content of the newsletter and overall marketing of our firm’s legal services with some
expressions of personal interests and sentiments authored by the partners to help humanize our firm. That is why we chose the name “Perspectives” to describe our newsletter. - Written by Denis Kenny The Latest Chapter in California Independent Contractor Classification LawsThe issue of independent contractor classification is, perhaps unfortunately, something that many Californians have become too well versed in during recent years. To briefly recap, the issue gained renewed focus with the California Supreme Court’s, April 2018 decision in Dynamex Operations West, Inc. v Superior Court. There the Court ruled employers bore the burden of demonstrating any worker treated as an independent contractor was properly classified as such under the “ABC test” which looks to three main factors in determining whether independent contractor classification is proper. The ABC test is largely viewed as tougher for the employer to satisfy than the test previously adopted by the Court in the 1989 case of S.G. Borello & Sons, Inc. v. Department of Industrial Relations (referred to of course as the “Borello test”). However, as soon as Dynamex was issued questions immediately arose regarding the extent of its applicability. Beware Deceptive and Scam Solicitations!If you have recently incorporated a business or filed for a trademark with the United States Patent and Trademark Office (“USPTO”), this may sound familiar… You receive a notice in the mail purportedly from an official state agency containing an official-looking seal, telling you that you need to file an annual report by a certain deadline, or you will be subject to fines and penalties. The notice has specific information about your entity, including information about officers and directors and your corporate ID number, and references state statutes requiring certain periodic filings. It then solicits payment from you for said filings and includes a return payment envelope. You receive a mailing from the “Patent and Trademark Office” saying that you have a renewal filing due in the next year and that you need to remit the fee for the renewal. The notice contains many details regarding your trademark, including the serial number, date the application was filed and specific renewal dates. They state that you must remit payment to them for the filing, or your mark will be cancelled. In each case, you are confused because you have already paid the state or USPTO fees, and have maintained consistent contact with your attorney, who may not have mentioned any deadlines or filings that are due. You wonder whether you should just pay it to avoid jeopardizing your entity or trademark. DON’T! California Employer Alert: Ninth Circuit upholds California's 2020 Law Barring Employers from Requiring Employees to Agree to Binding Arbitration as a Condition of EmploymentCalifornia is generally known as one of the more employee-friendly jurisdictions, and some commentators have opined that mandatory arbitration is at odds with California’s worker-protection public policy. In fact, two race discrimination lawsuits filed by former employees against Tesla, Inc., with largely similar facts of colleagues/supervisors using racial slurs against the plaintiffs and other Black workers demonstrate the potential disparity in jury verdicts v. arbitration awards. |