California Passes Gig-Worker Law, Assembly Bill No. 5 (AB5)

New law changes the rules employers must use to determine whether workers are employees or independent contractors.

California's governor has signed a new law (AB5) that dramatically changes the rules employers must use to determine whether workers are employees or independent contractors ("ICs") in the state. Under the new law, many California workers who have previously been classified as ICs should be reclassified as employees and will be entitled to employee benefits and protections that ICs normally don't get. The law does not apply to workers outside California.

Although the law was aimed primarily at workers who obtain temporary (“gig”) work through online hiring platforms such as Uber, Lyft, and Postmates, it applies to all California workers except for those in certain specified exempt job categories. The law is scheduled to go into effect on January 1, 2020.

For more information, see California Passes Historic Gig-Worker Law.