AB‐5, statutorily re‐defining "employee" and "independent Contractor", passed the California Assembly yesterday (9/11/2019), and is now headed to Governor Newsom for his anticipated signature.
Overall, it improves the employment law situation from the California Supreme Court's Dynamex "WORSE" decision and law of the land (currently), to only a "VERY‐BAD" statute (when signed).
AB‐5 is only "VERY‐BAD"‐ (sarcasm intended 🤣 ), because Dynamex's strict ABC definition of independent contractor applied to ALL working relations in California, and it was the law of the land in California. At least AB‐5 limited the ABC definition to allow some carve‐outs for some workers. Whether those carve‐outs apply to you requires a good look.
If you're an employer who only has employees working for you, then you dodged that ballistic missile. But AB‐5 only scratches the surface of what's come down from Sacramento and our California Supreme
Court. AND THERE'S MORE STUFF COMING DOWN!!
Many case decisions and statutes are tightening the grip around the throats of good employers, and they are being pursued and litigated by a new den of aggressive plaintiff employee attorney.
It is not uncommon to find entrepreneurs simply trying to run a business who have miscalculated a wage or inadvertently violated a paystub or timekeeping rule, but those aggressive plaintiff employee attorneys are turning those miscalculations into weapons used against employers.
So, now may be time for a good review of your employment practices. Those 'good' policies from last year and this year are likely outdated or will be soon, and likely before the end of this year. There are even some good ways available to stay out of court or even out of the Labor Commissioner for disputes that should be resolved quickly instead of receiving a lawsuit.