Ref: AB 5 & Dynamex V. Superior Court of Los Angeles

Effective January 1, 2020, Assembly Bill 5 takes effect. Most of the media coverage on this bill has centered on Uber, Lyft and other “gig economy” jobs. However, it’s likely to impact many small businesses.

Employee versus independent contractor classification is at the heart of the new law. This is a legal determination. As we are not a law firm, it is outside of the scope of our licenses to help you with this study. However, IF you hire non-licensed individuals as independent contractors within your business, we encourage you to have to those relationships reviewed by an attorney trained in this area. We can provide referrals on request.

Other helps: The Employment Development Department will soon release the 2020 version of the California Employers Guide (DE 44) on their web site www.edd.ca.gov. You’ll want to read the section, “Who Is An Employee.”

As the ability to use individuals as independent contractors is more narrowly defined, and the penalties for mis-classification greater, you’ll want to pay attention to this new law.