The Potential Effects Of Calif. Contractor Reclassification Bill

Law360 (July 19, 2019, 12:57 PM EDT) -- Assembly Bill 5, currently pending in the California Legislature, would codify into the state Labor Code the “ABC" test for determining whether a worker in the Golden State is an employee or an independent contractor. If passed into law, the new test would reclassify hundreds of thousands of Californians who currently operate as independent contractors as employees. The impact on California’s economy — the fifth largest in the world — could be extraordinary.

The bill continues to advance. It was recently voted out of the California Senate Labor, Public Employment and Retirement Committee on a 4-1 vote.[1] At the recent meeting, the committee...

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