California’s New AB5 Law: How Does It Apply to You?

If you missed our first blog covering the basics of California's new AB5 law, you can read that here.

To dive a deeper, let’s consider potential pros and cons, and certain exemptions.

Pros & Cons

Examine your current situation and consider if it makes sense to your business to discuss your situation with an employment law attorney. Discuss with your peers and others within your industry to get their thoughts and discuss your concerns and potential risks to your business.

Who is exempt?

50+ professions and types of businesses are exempt, including insurance agents, attorneys, real estate agents, and certain types of business-to-business contractors and referral agencies. Further exemptions can be found in Section 2750.3a of the bill.

Other Opinions

Some companies have different opinions on the law and how it will affect them. Uber and Lyft have put $60 million into a campaign committee to support their position that their drivers should continue to be classified as contractors. Uber’s official statement: We expect we will continue to respond to claims of misclassification in arbitration and in court as necessary, just as we do now. But we will also continue to advocate for the independence and choice that drivers tell us again and again in surveys, polls, focus groups, and personal conversations that they value most.

We’d love to hear your thoughts on the bill and how it affects different individuals and industries! Comment below! Do you want to stay in-the-know on trending topics? Subscribe to our email list to get trending news delivered directly to your inbox!

Sources:

Exemptions California Assembly Bill 5 (AB5) Definition (2019)

Uber Newsroom Update on AB5 (2019)