News Notes: Court Considers Empoyee Eligibility For Calipers Benefits

A California Court of Appeal is currently reviewing an important ruling by a lower court affecting eligibility of state contract workers to receive CalPERS benefits. Employees of the Metropolitan Water District of Southern California brought a class action lawsuit contending that agencies bound by the Public Employees’ Retirement Law must enroll all employees for CalPERS benefits, including workers who were not hired through the agency’s merit selection process but were hired and paid by a contract service provider. A superior court in Los Angeles ruled that these contract workers are common-law employees and must be enrolled in CalPERS. The outcome of this lawsuit could have far-reaching implications for public employers.