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Author Topic: Forced Patronage, Chargebacks, & Employment Status  (Read 940 times)
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« on: January 11, 2016, 03:30:20 PM »

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Labor Code Ā§ 450
prohibits the employer from requiring their employees to patronize specific and identifiable third parties. 

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DLSE Opinion Letter
example, an employer cannot require, as a condition of employment, that the employee purchase a vehicle which advertises the name of the employer and further requires that the vehicle be purchased from one or any number of vendors chosen by the employer.

I've often seen "independent" owner-operators for trucking companies whose pay is reduced by "chargebacks" for lease payments on the tractor unit they are buying from the employer (in one case, it was another company with similar ownership).  This DLSE Opinion Letter lends some support in the employment status question for drivers.  If there are chargebacks deducted from the worker's pay, I think this helps establish employer-employee status.


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