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California Upends Independent Contractor Relationships with AB 5

California Upends Independent Contractor Relationships with AB 5

September 26, 2019 at 8:20 AM - independent contractor,

With the recent passage of Assembly Bill 5 (AB 5), California has dramatically reshaped the relationship between independent contractors and their clients. An estimated 1 million Californians who are currently classified as independent contractors may be reclassified as employees under AB 5, beginning January 1, 2020. Businesses that have become accustomed to using lower-cost independent contractors to perform critical business functions will need to revisit these arrangements and make necessary operational and pricing adjustments to comply with the new rules.

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