Re: AB5 goes into effect January 1

Subject: Re: AB5 goes into effect January 1
From: Mark Giffin <mgiffin -at- earthlink -dot- net>
To: techwr-l -at- lists -dot- techwr-l -dot- com
Date: Wed, 18 Dec 2019 09:40:04 -0800

Thanks for the summary Lauren. I read a couple days ago that Uber stated that they believe this new law does not apply to them. So I'm sure that means more litigation coming. Looks like a big mess.

Mark Giffin
Mark Giffin Consulting, Inc.
http://www.markgiffin.com/

On 12/17/2019 11:36 PM, Lauren wrote:

The news is abuzz about AB5 going into effect in two weeks. Here is some information about it.

California Assembly Bill 5 (AB5), popularly known as the âgig worker bill,â is a piece of legislation signed into law by Governor Gavin Newsom in September 2019. Scheduled to go into effect on Jan. 1, 2020, it will require companies that hire independent contractors to reclassify them as employees, with a few exceptions. The bill expands on a ruling made in a case that reached the California Supreme Court in 2018, Dynamex Operations West, Inc. vs. Superior Court of Los Angeles.

KEY TAKEAWAYS

 * California Assembly Bill 5 (AB5) extends employee classification
ÂÂÂ status to gig workers.
 * Companies must use a three-pronged test to prove workers are
ÂÂÂ independent contractors, not employees.
 * AB5 is designed to regulate companies that hire gig workers in
ÂÂÂ large numbers, such as Uber, Lyft, and DoorDash.

https://www.investopedia.com/california-assembly-bill-5-ab5-4773201


TechRepublic summarizes key points.

California's new law takes effect January 1 and it will curtail freelancers and independent contractorsâincluding those who work in techâand other states are following suit.

https://www.techrepublic.com/article/why-the-gig-economy-is-in-danger/


Forbes has some predictions. #9 looks fun.

9. Higher Demand For Project-Based Contractors

In 2020, you will have more people working as contractors for companies of all sizes. This will affect business as they hire more remote project based contractors and freelancers to get the work done instead of hiring full-time employees. This trend will become more popular with workers as it provides more opportunity for them to live the lifestyles they desire by providing flexible work schedules. - Katrina Brittingham, VentureReady LLC

https://www.forbes.com/sites/forbescoachescouncil/2019/12/13/12-ways-the-gig-economy-may-evolve-in-2020-and-how-it-will-impact-the-business-world/ <https://www.forbes.com/sites/forbescoachescouncil/2019/12/13/12-ways-the-gig-economy-may-evolve-in-2020-and-how-it-will-impact-the-business-world/#3b865d39527f>

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