September 23rd, 2019
Governor Newsom Signs AB-5 Into Law, Altering the Legal Landscape for Businesses That Work with Independent Contractors
On September 18, 2019, Governor Gavin Newsom signed into law AB-5, sweeping legislation that will affect the proper employment classification of over a million California workers who currently work as independent contractors. AB-5 codifies and expands the California Supreme Court’s decision in Dynamex Operations West, Inc. v. Superior Court of Los Angeles, 4 Cal.5th 903 (2018), which adopted the “ABC test” in holding that a company classifying an individual as an independent contractor bears the burden of justifying that individual’s independent contractor classification.