15 F.4th 954
9th Cir.2021Background
- California codified the "ABC test" (Dynamex) in AB 5 and later amended it with AB 2257 (§ 2778) to curb worker misclassification and protect wage/benefit obligations.
- AB 5/AB 2257 created occupational exemptions where Borello (multi-factor control test) rather than Dynamex (ABC) applies; some professions (doctors, lawyers, etc.) received broad exemptions, while freelance writers/photographers received narrower, conditional exemptions.
- Early AB 5 imposed a 35-submission annual cap for freelancers and excluded certain photographers/videographers working on defined "motion pictures;" AB 2257 removed the submission cap but added other limiting conditions (e.g., no replacement of an employee, no primary performance at hirer’s location, ability to work for multiple hirers).
- The American Society of Journalists and Authors and National Press Photographers Association (ASJA) sued, alleging § 2778 violates the First Amendment (content-based regulation of speech) and the Equal Protection Clause (irrational occupational distinctions).
- The district court denied preliminary injunctive relief and dismissed the suit; the Ninth Circuit reviewed the dismissal de novo (merger doctrine) and affirmed, holding the law regulates economic activity and that occupational differences survive rational-basis review.
Issues
| Issue | Plaintiff's Argument (ASJA) | Defendant's Argument (Bonta/State) | Held |
|---|---|---|---|
| Whether § 2778 is a content-based regulation of speech (First Amendment) | The statute’s applicability depends on the type/content of work (e.g., journalism, creative writing, photography), so it burdens speech and triggers strict scrutiny | § 2778 regulates worker classification/economic conduct, not the content or timing/manner of speech; any effect on speech is incidental | Not content-based; regulates economic activity, so no strict scrutiny applies |
| Whether the "motion pictures" exclusion impermissibly burdens newsgathering/filmmaking (First Amendment) | Excluding workers who work on "motion pictures" (including broadcast news) targets a medium and burdens filming of matters of public interest | "Motion pictures" denotes an industry/medium, not a message-based classification; medium-based rules do not automatically implicate the First Amendment | No First Amendment violation; medium-based distinction is content-neutral in this context |
| Whether § 2778’s occupational exemptions violate Equal Protection | The exemptions treat speaking professions differently and are arbitrary or irrationally underinclusive | The Legislature rationally tailored exemptions based on historical treatment, market structure, misclassification risk, and other policy considerations | Survives rational-basis review; occupational classifications are rationally related to legitimate state interests |
Key Cases Cited
- Dynamex Operations West, Inc. v. Superior Court, 416 P.3d 1 (Cal. 2018) (adopting the ABC test for employee classification)
- S.G. Borello & Sons, Inc. v. Department of Industrial Relations, 769 P.2d 399 (Cal. 1989) (multi-factor test focusing on control)
- Reed v. Town of Gilbert, 576 U.S. 155 (2015) (content-based speech restrictions trigger strict scrutiny)
- Sorrell v. IMS Health Inc., 564 U.S. 552 (2011) (distinguishing regulations of speech from regulations of economic conduct that incidentally affect speech)
- Minneapolis Star & Tribune Co. v. Comm’r of Revenue, 460 U.S. 575 (1983) (invalidating a tax that singled out the press)
- Simon & Schuster v. Members of N.Y. State Crime Victims Bd., 502 U.S. 105 (1991) (striking content-based financial burden on publications)
- Arcara v. Cloud Books, Inc., 478 U.S. 697 (1986) (economic regulation that incidentally burdens speech is often permissible)
- FCC v. Beach Communications, Inc., 508 U.S. 307 (1993) (rational-basis test permits speculative legislative classifications)
- Merrifield v. Lockyer, 547 F.3d 978 (9th Cir. 2008) (example of an Equal Protection classification failing rational-basis scrutiny under unique facts)
- Cal. Trucking Ass’n v. Bonta, 996 F.3d 644 (9th Cir. 2021) (upholding AB 5 as generally applicable despite exemptions)
