California’s groundbreaking worker classification law of 2019, “AB5”, continues to reverberate throughout the state and beyond. To recap, in 2019 the California state Legislature passed Assembly Bill 5 (AB5), which was signed into law by Governor Gavin Newsom. AB5 mandates that employers classify all workers as “employees” (with the additional benefits and costs that go along with that) unless the employer can prove the following three things:
- The worker is free to perform services without the control or direction of the company;
- The worker is performing work tasks that are outside the usual course of the company’s business activities; and
- The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.