How Will Assembly Bill 5 Change The Employment Landscape?

California has always been known as a state that stands up for the rights of workers. A new law is about to take effect that could significantly impact many workers in this state. Assembly Bill 5 was passed this year and signed by the governor in September. At The Kaufman Law Firm, our Los Angeles unpaid overtime attorneys want to look at how wage and overtime practices could change for you and the people you work for.

Workers could see major changes

State lawmakers in California recently passed Assembly Bill 5 (AB 5). The governor signed the bill into law in September, and changes are set to take effect on January 1, 2020. The bill is an attempt to ensure that workers are treated fairly by preventing employers from unjustly classifying them as independent contractors.

Why does this matter?

When an employer uses an independent contractor or freelancer, they can get away with not paying things like unemployment insurance, minimum wage, overtime, benefits, and more. Some of the most common examples of independent contractors are rideshare service drivers, many in the construction industry, commercial truck drivers, and more.

The bill codifies into law a recent state Supreme Court decision that better defines when an employer can classify a worker as a contractor as opposed to an employee. This boils down to three points:

The worker is free from the control of the person who hires them. They can complete the task however they see fit.
The worker performs work that is outside of the employer’s usual means of daily operation.
The worker is usually engaged in an established trade, or occupation of the same nature as the work performed for the hiring entity

If you have previously been classified as an independent contractor and think you should be classified as an employee under the new law, you may need to contact an attorney. It is likely that many employers in California will attempt to get around this new law, thereby continuing to keep workers from their rightful pay and benefits.

It should be noted that this law is being challenged in the courts, particularly by independent commercial truckers who say this will hurt their bottom line.

We are ready to get to work on your case

If you are having trouble getting your employer to pay a fair wage or pay you overtime for hours worked during the week, you need to seek legal assistance. Wage fraud is a big deal, and the knowledgeable and experienced team at The Kaufman Law Firm is here to help. We will investigate your claims and work to recover the compensation you deserve, including: