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  • Will Assembly Bill 5 Destroy the Gig Economy?

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    August 23, 2019

    A momentous Supreme Court decision. A presidential candidate weighing in. A noisy late-August demonstration outside the Capitol. Not Washington, but Sacramento. Not abortion or guns — Dynamex.

    The April 2018 Supreme Court decision in Dynamex Operations West v. Superior Court of Los Angeles County set stricter rules for how companies use contractors. Since then, many businesses have waited to see how the state legislature would respond. 

    We’re about to find out. A bill being furiously negotiated — Assembly Bill 5 — would codify the court’s strict ABC test for determining who is a legitimate contractor, with huge implications for the gig economy and employers who use contractors more broadly. The situation, says Amelya Stevenson of Granite Bay human resources consulting firm e-VentExe, is a “hornet’s nest.” Read more.