{"id":15943,"date":"2019-10-23T20:47:13","date_gmt":"2019-10-23T20:47:13","guid":{"rendered":"https:\/\/fieldnation.com\/resources\/ab-5\/"},"modified":"2024-09-12T13:00:59","modified_gmt":"2024-09-12T18:00:59","slug":"ab-5","status":"publish","type":"post","link":"https:\/\/fieldnation.com\/resources\/ab-5","title":{"rendered":"California AB5 – What you need to know"},"content":{"rendered":"<\/a>

What is California Assembly Bill 5?<\/strong><\/h2>\n

Assembly Bill 5 (AB5) may forever change how companies engage independent talent to provide services in California. Effective January 1, 2020, AB5 restricts the classification of an independent contractor to those individuals able to meet all three requirements of the following \u201cABC\u201d test:<\/span><\/p>\n

A) Being free from the control of the company they are working for.<\/span><\/p>\n

B) Performing work that\u2019s outside the course of the company\u2019s usual business.<\/span><\/p>\n

C) Having their own independently established trade, occupation, or business.<\/span><\/p>\n

AB5 codifies and expands on the 2018 California Supreme Court Dynamex decision. In 2004, Dynamex \u2014 a nationwide same-day delivery service \u2014 converted all of its drivers from employees to independent contractors, leading to litigation initiated by a former employee. The Court embraced a standard presuming that all workers are employees, not contractors, and placed the burden on employers to establish the appropriateness of classifying an individual as an independent contractor based on the newly adopted \u201cABC\u201d test.<\/span><\/p>\n

Under AB5, classification as either an independent contractor or an employee affects the applicability of labor laws such as minimum wage, overtime pay, and workers\u2019 compensation. State and cities will have the right to file suit against companies over misclassification, overriding common arbitration agreements currently in use.<\/span><\/p>\n

While other states have adopted rules aimed to extend benefits to independent contractors, California\u2019s bill is arguably the strongest in the nation and is likely to set a precedent for legislation pending in other states.<\/span><\/p>\n

Field Nation is enhancing our marketplace to evolve along with these new regulations. On January 1, we will add visibility to technicians that have been registered as an employee of a business. The companies employing these technicians must also confirm they have the following:\u00a0<\/span><\/p>\n