Classifying workers as independent contractors is about to get more difficult in California. The state has recently passed a new law, Assembly Bill 5, which establishes new rules for gig work. The law goes into effect on January 1, 2020, and it could have major implications for any business that uses contract workers.
The Dynamex Decision and Background for AB5
The rise of gig work has led to a legal debate over worker classification. In some cases, companies have been accused of misclassifying employees as independent contractors, thereby denying them of their right to overtime, minimum wage, unemployment insurance, workers’ compensation and other protections that are guaranteed to employees. This has led to multiple lawsuits. One notable lawsuit was Dynamex Operations West, Inc. v. Superior Court of Los Angeles. Read More
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