California Courts Decide if Newspaper Carriers are Employees vs. Independent Contractors

A California court has issued a ruling in the debate raised by newspaper carriers in a legal action stating they believed they should be classified as employees vs. independent contractors.

The newspaper carriers delivered The San Diego-Union Tribune (UT) and stated that their duties were aligned with UT employees vs. independent contractors due to the work they performed in the employee rights lawsuit they filed in January 2009. The legal action raised allegations under California Labor Code including failure to reimburse for reasonable business expenses, failure to pay minimum wage and overtime wages and failure to provide meal breaks and rest periods.

The workers claimed that they should be entitled to receive reimbursement for business expenses they incurred. The California appellate court ultimately concluded that the workers should have been classified as employees vs. independent contractors, as their current contract stated. This allowed the workers to be reimbursed for business expenses that they incurred during their work.

The appeals court found there was an error in the calculation by the trial court for the amount that the newspaper carriers were to be awarded, and the case was sent back to the trial court so the reimbursement of business expenses could be recalculated.

Many claims raised by the newspaper carriers in the original lawsuit were dismissed, but the reimbursement claim remained. In May 2013, the plaitniffs won class certification. The Class included all newspaper carriers who had signed home delivery contracts with the Union Tribune beginning in 200.

Despite UT’s claims that the plaintiffs were in fact independent contractors and thus not entitled to reimbursement of business expenses, the court rejected the newspaper’s claim, ending the debate of employees vs. independent contractors. The court ruled that the newspaper carriers were in fact employees and the plaintiffs were awarded restitution in an amount greater than $3 million.

Of the restitution granted, mileage reimbursement represented the largest allotments, at nearly $2.3 million, poly bags and rubber bands were reimbursed at more than $600,000, more than $100,000 was reimbursed for warehouse rent, and more than $100,000 was reimbursed for insurance and bond premiums. At the conclusion of the trial, the newspaper appealed the ruling.

Why UT Employees Believed They Are Employees vs. Independent Contractors

The newspaper carriers signed a contract with UT stating that they were independent contractors and not employees. However, the contract required the newspaper carriers to deliver each newspaper in an appropriate and readable condition before 5:30 AM on weekdays and 6:30 AM on weekends and holidays. The newspaper carriers were paid based on the number of newspapers they delivered.

Each newspaper carrier was required to carry accident insurance as well as bonding. Additionally, newspaper carriers were required to report to the distribution centers between 2 AM and 4 AM each day and they spent approximately 45 minutes to an hour assembling and preparing the newspapers to be delivered, and a contract specified that the assembly must be done at the distribution center.

How California Defines Employees vs. Independent Contractors

California law states that the “principal test of an employment relationship is whether the person to whom the service is rendered has the right to control the manner and means of accomplishing the result desired,” the court stated. A number of factors are considered when determining the relationship of employees vs. independent contractors including:

• Can the business fire at will without cause?
• Is the service provider engaged in a distinct occupation or business?
• Who supplies the tools, instruments and place of work?
• How long are services to be performed?
• Are workers paid hourly or per job?
• Is the work part of the regular business of the company?
• What do the parties believe about creating a relationship as employees vs. independent contractors?

Were You Misclassified as an Independent Contractor?

If you believe you have been misclassified as an independent contractor in California, you may be eligible to take legal action. An attorney can review your individual case and a free consultation and can help you decide as you consider proceeding with filing a lawsuit.

Join a Free California Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years in California, you have rights – and you don’t have to take on the company alone.

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