In a unanimous decision, the 9th circuit ruled in the case of Narayan v. EGL, Inc. that California law determines the classification of a worker employed in California even when the worker’s contract contains a choice-of-law provision.  Workers’ rights and benefits often vary depending on the worker’s classification as either an employee or an independent contractor.  The plaintiffs were truck drivers in California who signed an agreement with EGL, Inc. containing a choice-of-law provision.  The provision states that the truck drivers would be subject to the labor laws of Texas.  However, the 9th Circuit held that a choice-of-law provision does not determine which state’s law is used to classify a worker when that worker’s claim arises outside the contract.  In this case, the claim arises not from the contract itself, but from the California Labor Code which guarantees the following benefits for employees: overtime compensation, reimbursement for business expenses, and off-duty meal periods.  The court’s full opinion is here.

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This entry was posted on Wednesday, July 21st, 2010 at 9:31 am and is filed under Labor Laws. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.