Daily Business Report-April 15, 2019
Assemblywoman Lorena Gonzalez at a Latino Caucus legislative priorities press conference on April 3. (Courtesy Lorena Gonzalez)
Commentary
Big Issue: Who is an employee and who’s not?
By Dan Walters | CALmatters
Lorena Gonzalez finds herself in an unusual political position this year—and clearly relishes it.
Gonzalez, a Democratic assemblywoman from San Diego, is best known as a fierce warrior for worker rights and benefits, and carries a heavy load of legislation, usually on behalf of unions and other advocacy groups.
That puts her in constant conflict with business and employer interests. Her legislation routinely appears on the California Chamber of Commerce’s “job killer” list of bills that would, employers say, raise their costs and discourage investment.
She’s still fighting those battles, but a landmark decision last year by the state Supreme Court, tightening up the legal definition of an employee, is now sending business lobbyists to her, figuratively with hats in hand, to ask for exemptions from the court’s definition.
By applying a three-part test of a worker’s duties, the court’s ruling would shift countless thousands of workers from contractor status to payroll-employee status. Unions and other critics have long complained that rampant “misclassification” has deprived workers of basic rights and benefits, including the ability to unionize.
Gonzalez has introduced Assembly Bill 5, which would codify the decision, known colloquially as “Dynamex” for the package delivery company whose workers, having been classified as contractors, sued and won the right to be employees.
The key part of the Supreme Court’s “ABC” test—already used in many other states—is the declaration that a worker can be classified as a contractor only if he or she performs work that is outside of the usual course of the employer’s business.
Thus, the court ruled, since Dynamex’s delivery drivers are the core of what the company does, they must become employees.
Dynamex is widely seen as a blow to the so-called “gig economy” of companies dependent on part-time workers, with ride services such as Lyft and Uber the best-known examples. Their drivers provide their own vehicles, but the companies make the connection with riders and collect a portion of their fees.
Ever since the decision was issued a year ago, employers—and some contract workers—have been pressing for exemptions.
A coalition of major business groups, headed by the Chamber of Commerce, pledged to support the bill if Gonzalez would agree to broader exemptions and “provide a more progressive and holistic approach that fits today’s modern workforce.”
“The coalition seeks exemptions for workers “who prefer to control their own schedule,” including consultants, travel agents, and truck, taxi and gig economy drivers” and exemptions for “short-term projects and business-to-business contracts.”
Gonzalez has given some ground, agreeing to exempt insurance agents, doctors, stock brokers, investment advisers and some salespersons. But there’s a long line of employers and workers in other sectors seeking similar treatment.
They appeared at the bill’s first committee hearing, pledging to support the bill if given exemptions. Many of those seeking relief were owner-operators of heavy trucks, who said they prefer the flexibility and independence of working as contractors.
“I’m willing to have those discussions,” Gonzalez told the committee. “I’m committed to striking a balance.”
However, she said the bill needs to “send a message that rings loud and clear—enough is enough,” about misclassification she said is hurting workers and costing the state billions of dollars in potential tax revenue from payroll work. “Something is wrong with the way we’ve allowed these companies to operate.”
The bill cleared the Assembly’s Labor Committee easily, but its final shape is very uncertain.
____________________
Carlsbad Village multi-family
property sells for $9.3 million
The Harding Gardens Apartments, a 22,526-square-foot, 35-unit multifamily property located at 3380 Harding St. in Carlsbad, has sold for $9,300,000 to F&F Harding LP. The seller was Ralph K. DeLoach Separate Property Trust. The new owner plans to complete a series of interior and exterior renovations to the property.
The Harding Gardens Apartments have been under the same private family ownership for more than 45 years.
Colliers International San Diego Region represented the seller in the transaction.
Erika Rivas, student at California Western School of Law, left, with Cal Western Professor Laura Padilla
____________________
Higgs Fletcher & Mack awards Diversity
Scholarship to law student Erika Rivas
Higgs Fletcher & Mack has awarded a Diversity Scholarship to Erika Rivas, a second- year student at California Western School of Law. The scholarship of $3,500 is presented to the student who has demonstrated ethical and/or civic leadership and a commitment to providing services to underrepresented groups in the community. 2019 marks the seventh consecutive year HFM has awarded a Diversity Scholarship to a California Western student.
A 2020 Juris Doctor candidate, Rivas, who is from South Central Los Angeles, spent her undergraduate years at UCLA where she graduated with a bachelor’s degree in political science.
California Western Professor Laura Padilla presented the award to Rivas at a Student Recognition Reception earlier in the month at the San Diego Natural History Museum in Balboa Park.
Rivas was awarded a Josie Dixon Summer Public Interest Law Foundation grant in 2018. Outside of law school, she has clerked for the Inner City Law Center and was a fellow in the Justice Corp, serving in the Los Angeles Superior Court with indigent parties.
____________________
Postal Service extends collection
hours at Process & Distribution Center
The Margaret L. Sellers Processing & Distribution Center at 11251 Rancho Carmel Drive, San Diego, is extending mail collection service until midnight today to accommodate last-minute tax filers. Mail being dropped must already have postage applied. All other mail collection boxes and Post Office mail drops will be collected at their regular posted times today.
All Post Office retail lobbies will adhere to their normal business hours. Individual Post Office service hours are available by visiting usps.com, or calling 1-800-275-8777.
____________________
Casa Guadalajara executive chef
honored by Chefs de Cuisine Association
Chef Jose Duran, executive chef of Diane Powers’ Casa Guadalajara in Old Town, has been named the winner of the 2019 San Diego Lifetime Achievement Award by the Chefs de Cuisine Association. The award recognizes a longstanding member who has a distinguished history of service to the culinary arts and has exhibited leadership and provided inspiration to others within the industry.
With nearly 40 years of culinary experience, Chef Duran began his career in Mexico City in the early 1970s. Later, with only $40 in his pocket, he packed up his family and headed for the U.S. where his hard work and dedication helped him land jobs at popular restaurants such as Mr. A’s and Casa de Bandini. Ultimately, Duran worked his way up to executive chef at Casa Guadalajara in 1995.
Chef Duran is the mastermind behind Casa Guadalajara’s menu, pairing fresh seafood with authentic Mexican recipes for a winning combination. The menu includes favorites such as Cilantro Lime Mahi Mahi, Carne Asasda Tampiqueña and his take on the classic Yucatan dish, Cochinita Pibil.
“Growing up in Mexico City and working at various restaurants at the age of 16, I only dreamed that one day I’d be an executive chef,” said Duran. “It is a true honor to be recognized with the Lifetime Achievement Award. It reminds me why cooking is my career and my passion.”
____________________
San Diego City College leader selected as
2019-2020 Aspen Presidential Fellow
Vice President of Student Services Denise Whisenhunt of San Diego City College has been selected by the Aspen Institute’s College Excellence Program to join the 2019-2020 class of the Aspen Presidential Fellowship for Community College Excellence, a leadership program aimed at preparing the next generation of community college presidents to transform institutions to achieve higher and more equitable levels of student success, both in college and in the labor market.
Whisenhunt and the 39 other Aspen Presidential Fellows will embark on a 10-month fellowship beginning in July 2019. Delivered in collaboration with the Stanford Educational Leadership Initiative, the fellows will work with mentors – current and former community college presidents – who have achieved exceptional outcomes for students throughout their careers. Fellows will also learn from national experts about ways to harness data to assess student success outcomes, strategies for internal change leadership, and how to create strong external partnerships with K-12 schools, four-year colleges, and employers.
Click here for more on Denise Whisenhunt
____________________
CSU San Marcos President Karen Haynes
to receive Herb Klein Civic Leadership Award
The San Diego Regional EDC will award Karen Haynes, president of Cal State San Marcos since 2004, with the Herb Klein Civic Leadership Award at EDC’s annual dinner on May 2 at SeaWorld. The award recognizes individuals who have demonstrated outstanding leadership by addressing challenges and making significant contributions to improve the region. Haynes, the longest-tenured president in Cal State San Marcos history, will retire in June.
Under her leadership, the school’s population has grown from 7,000 students to 17,000, and she has overseen the addition of 15 new buildings, more than 100 academic programs and a new satellite campus in Temecula.
