Do you know your ABC's ?

As of January 1, 2020, Assembly Bill 5 (AB5) will go into effect in California and could impact whether your workers are legally considered to be employees or independent contractors.

AB5 codifies the ABC test established in Dynamex v. Superior Court ( 2018). Under this test, in order for an employee to be considered an independent contractors, they must meet all three of the following requirements:

1. (A)The individual is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.

2. (B) The individual performs work that is outside the usual course of the hiring entity's business.

3. (C) The individual is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.

To better understand how your current employees may be impacted by AB5, reach out to your attorney for an analysis and detailed explanation catered to your personal business.

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