The California Assembly voted 56 to 15, passing AB5 Worker Status: Employees and Independent Contractors on 9/11/19.
California Assembly Bill 5 ~ “An act to amend Section 3351 of, and to add Section 2750.3 to, the Labor Code, and to amend Sections 606.5 and 621 of the Unemployment Insurance Code, relating to employment, and making an appropriation therefor.”
Under AB5, the three-part criteria or ABC test (Dynamex) is used to determine employment status. It says a worker is an employee if the worker’s tasks are performed under a company’s control; those tasks are central to that company’s business; and the worker does not have an independent enterprise in that trade.
