Assembly bill 5 of 2019, signed into law by Governor Newsom, became law on January 1, 2020, though it will not apply to workers compensation classification until July 1, 2020.
Many ACL members are seeking guidance on how the bill works and how to classify independent contractors who work for them. Though it is recommended that you consult attorneys and accountants who work for you for specific advice, here are four fact sheets that may help guide you.
AB 5 BACKGROUNDER: From the office of State Senator Brian Dahle (R-Redding). Specific information about the “Business to Business Exemption” that your business may be able to use to prove that you have hired an independent contractor.
AB 5 WHITE PAPER – CAL CHAMBER: A “deep dive” into the details of AB 5, including a comparison of three “tests” to prove an independent contractor:
- The Borello Test – Used for years in our industry.
- The Dynamex Decision ABC Test – This test replaces Borrello and is a tougher test to meet.
- The Business to Business Exemption in AB 5
AB 5 PRESENTATION FOR ACL: A slide show prepared by a law firm for the 2020 ACL Annual Meeting.
QUESTIONS AND ANSWERS AB 5: A State of California Q and A.
Please Note: In 2020, Associated California Loggers and other organizations are working on ways to “fix” AB 5 and the Dynamex Decision. This will be a complicated time. Actions divide into The Three L’s:
- Litigation: Lawsuits are underway in the courts to reverse aspects of AB 5.
- Legislation: Legislative Bills are being introduced at the State Capitol to change or reverse aspects of AB 5. A proposition may appear on the November 2020 state ballot to overturn parts of AB 5.
- Living With AB 5: Until litigation and legislation make changes to AB 5, we urge our members to use the documents attached and to get advice on how to “live with AB 5” so as to run your business with the least amount of burden. We cannot give legal advice, but we can help.