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  • Independent Contractor Legislation Moves; CalChamber, Coalition Seek More Changes

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    June 10, 2019

    Legislation that makes a start toward restoring flexibility for numerous individuals working as independent contractors has moved from the Assembly to the Senate.

    The California Chamber of Commerce and a broad-based coalition are continuing to seek amendments to AB 5 (Gonzalez; D-San Diego). The bill exempts certain industries/professions from the application of an April 2018 California Supreme Court ruling that upended the test for determining who is an independent contractor—Dynamex Operations West v. Superior Court.

    As AB 5 passed the Assembly on May 29, the workers it exempts from the Dynamexdecision are: doctors, insurance agents, securities brokers, direct sellers, realtors, barbers, hair stylists, and listed professionals with degrees/licensing, including lawyers, accountants, engineers, architects, marketing specialists, and human resources administrators.

    The CalChamber and coalition support AB 5 if amended. They appreciate AB 5’s recognition that the Dynamex decision is not one size fits all, and agree the professions identified in the May 24 version of the bill should be exempted.

    But the Legislature should not stop with selecting just a few professions and not others similarly situated. The CalChamber and coalition are seeking additional amendments that provide a more progressive and holistic approach to the application of Dynamex that reflects today’s modern workforce.

    More Amendments Needed