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A New Law Passed Raising the Standard for Classifying Workers as Independent Contractors in California

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Since April 30, 2018, when the landmark California Supreme Court decision in Dynamex Operations West, Inc. v. Sup. Ct. (2018) 4 Cal.5th 903 (Dynamex) was issued, companies across the state have questioned whether the ABC independent contractor test adopted in that decision applies to them and/or their workers, how far it may apply, and whether it applies retroactively. The California Legislature has now stepped in and passed Assembly Bill 5 (“AB 5”) which has been called a landmark bill for workers. AB 5 answers some of those questions and adds some further areas of confusion. For more information, read on here.