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  • Classifying Employess: New Test Signed Into Law

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    September 27, 2019

    By CalChamber

    Last week, Governor Gavin Newsom signed legislation placing in law the test for determining when a worker is an independent contract as outlined in a California Supreme Court decision last year.

    AB 5 (Gonzalez; D-San Diego) codifies the “ABC” test adopted by the California Supreme Court and its exemptions go into effect on January 1, 2020.

    Much of the talk surrounding AB 5 has focused on the impact the “ABC” test will have on gig economy jobs, as the new classification test jeopardizes the flexibility and income opportunities the modern employment model provides for thousands of California workers. However, the legislation will affect more than those in the gig industry—it stands to affect nearly every sector of the economy.

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