On April 10, 2019, a Texas federal judge granted Sparrow Barns & Events an emergency temporary restraining order and preliminary injunction in a trade dress and copyright infringement case, preventing defendant Ruth Farm from advertising its venue rental business on social media and the internet. Sparrow Barns & Events, LLC v. Ruth Farm Inc., No. 4:19-CV-00067 (E. D. Tex. Apr. 10, 2019) (2019 WL 1560442).)
California companies should reevaluate how they classify social media freelancers
With companies increasingly turning to social media to meet their advertising needs, employers must take a closer look at how they classify social media consultants and freelancers. Although larger companies may have internal social media departments, many small companies contract outside social media consultants who work on an hourly basis. Typically, companies were able to classify these social media consultants as independent contractors provided that the consultant had the right to control the manner and means of their work.
Last year, in Dynamex Operations West, Inc. v. Superior Court of Los Angeles, the California Supreme Court threw out this standard in favor of a new, more strict test called the “ABC test.” The “ABC test” makes it significantly more difficult for a business to classify their workers as independent contractors. In order to classify a worker as an independent contractor, a company must prove that: