Among other things, AB 5 and later AB 2257 added a new article to the Labor Code addressing these issues (sections 2775-2787). The California Supreme Court first adopted the ABC test in Dynamex Operations West, Inc. AB 5 requires the application of the “ABC test” to determine if workers in California are employees or independent contractors for purposes of the Labor Code, the Unemployment Insurance Code, and the Industrial Welfare Commission (IWC) wage orders.
1.ĪB 5 is a bill the Governor signed into law in September 2019 addressing employment status when a hiring entity claims that the person it hired is an independent contractor. The new law addresses the “employment status” of workers when the hiring entity claims the worker is an independent contractor and not an employee. Sign up today In September of 2019, Governor Newsom signed Assembly Bill (AB) 5 into law. Join the Labor Commissioner and EDD on August 24 or September 13.
Learn about AB 5 and how to determine if a worker is an independent contractor or employee. Free seminar for the Trucking/Motor Carrier Industry.