Calif. Gov. Signs Worker Misclassification Bill Into Law

Law360 (September 18, 2019, 2:13 PM EDT) -- California Gov. Gavin Newsom on Wednesday signed a landmark measure making it harder for Golden State businesses to classify their workers as independent contractors, dealing a potential body blow to gig economy players like Uber and Lyft.

Assembly Bill 5 revamps the state's test for classifying workers as independent contractors, presuming workers are employees — who have several protections not afforded contractors — unless the hiring business can prove three specific things. The new law takes effect Jan. 1.

Newsom called the law "an important step" toward strengthening the middle class in a signing statement Wednesday.

"It will help reduce worker...

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