Bill > AB5

This bill codifies the California Supreme Court's Dynamex decision, which established a three-part "ABC" test to determine whether a worker is an employee or independent contractor. The bill generally requires that workers be considered employees unless the hiring entity can demonstrate that the worker is free from the entity's control, performs work outside the entity's usual course of business, and is customarily engaged in an independent trade or business. However, the bill exempts certain occupations, such as licensed insurance agents, healthcare professionals, and commercial fishermen, from the ABC test and instead applies a different test from the Borello decision. The bill also makes some changes to unemployment insurance provisions and allows the Attorney General and local prosecutors to bring actions to prevent employee misclassification.

Budget and Finance, Labor and Employment

http://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=201920200AB5