California Governor Signs Worker Classification Bill into Law

California Governor Signs Worker Classification Bill into Law

September 19, 2019

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California Governor Signs Worker Classification Bill into Law

Key Points:

  • On September 18, 2019, California Governor Gavin Newsom signed Assembly Bill 5 (AB5) into law, as expected.
  • The law codifies the “ABC” test—established in Dynamex Ops. West Inc. v. Superior Court, 4 Cal. 5th 903 (2018)—for determining whether an alleged independent contractor should be considered an employee under the Industrial Welfare Commission wage orders, and also extends the “ABC” test to Labor Code and Unemployment Insurance Code claims.
  • Certain specified occupations and industries are exempted from its scope.

Click here to read Akin Gump’s prior alert regarding this legislation.

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