Question
On September 18, 2019, California governor Gavin Newsom signed into law a contentious piece of legislationAB-5(Links to an external site.) that will potentially reclassify millions
On September 18, 2019, California governor Gavin Newsom signed into law a contentious piece of legislationAB-5(Links to an external site.)
that will potentially reclassify millions of independent contractors as employees and dramatically reshape the future of independent workforces in California and beyond.
As its nickname, the "gig worker bill" suggests, much of the discussion around AB5 has focused on its effects on the Ubers and Lyfts of the world. But it is actually far, far bigger than that, with the potential to touch nearly all companies in Californiaand even some outside of Californiathat use independent contractors.
Your assignment is to review thelaw: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB5
, and answer the following questions:
- AB-5 codifies a decision by the California Supreme Court in a 2018 case. What was that case called?
- Why did the state legislature adopt this new law, i.e., what problem were they trying to "fix"?
- The law codifies what is now known as the "ABC" test for classifying independent contractors. Describe the 3 prongs of that test.
- Does the new law provide any exceptions? If yes, name two of these exceptions.
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