Bill Text: CA AB5 | 2019-2020 | Regular Session | Introduced


Bill Title: Worker status: independent contractors.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2018-12-04 - From printer. May be heard in committee January 3. [AB5 Detail]

Download: California-2019-AB5-Introduced.html


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 5


Introduced by Assembly Member Gonzalez

December 03, 2018


An act to add Section 2750.3 to the Labor Code, relating to employment.


LEGISLATIVE COUNSEL'S DIGEST


AB 5, as introduced, Gonzalez. Worker status: independent contractors.
Existing law, as established in the case of Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018) 4 Cal.5th 903 (Dynamex), creates a presumption that a worker who performs services for a hirer is an employee. Existing law requires a 3-part test, commonly known as the “ABC” test, to establish that a worker is independent contractor.
This bill would state the intent of the Legislature to include provisions within this bill would codify the decision in the Dynamex case and clarify its application.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) On April 30, 2018, the California Supreme Court issued a unanimous decision in Dynamex Operations West, Inc. v. Superior Court of Los Angeles, (2018) 4 Cal.5th 903.
(b) In its decision, the Court cited the harm to misclassified workers who lose significant workplace protections, the unfairness to employers who must compete with companies that misclassify, and the loss to the state of needed revenue from companies that use misclassification to avoid obligations such as payment of payroll taxes, payment of premiums for workers compensation, Social Security, unemployment, and disability insurance.
(c) The misclassification of workers as independent contractors has been a significant factor in the erosion of the middle class and the rise in income inequality.

SEC. 2.

 Section 2750.3 is added to the Labor Code, to read:

2750.3.
 (a) It is the intent of the Legislature in enacting this section to include provisions that would codify the decision of the California Supreme Court in Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018) 4 Cal.5th 903, and would clarify the decision’s application in state law.

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