The CaliforniaLegislature introduced AB 5 to codify the ABC test set forth in theDynamex holding and proposes additional parameters to specify towhom and when the ABC test applies. (Photo: Shutterstock)
In May, the California State Assembly overwhelminglypassed a bill set to have a major impact on how companies classify their workers in the state. AssemblyBill 5 (AB 5) aims to codify the new standard expounded byDynamex Operations West, Inc. v. Superior Court ofLos Angeles for determining whether workers regulated by the17 Wage Orders in California are employees or independentcontractors.
Proponents of AB 5 see it as a means to address inadequateworkplace protections and loss of revenue due to underpaid payrolltaxes, workers’ compensation premiums, state unemployment, anddisability insurance. Critics, however, argue that the bill harmsworkers’ schedule flexibility and opportunities for supplementalincome.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
