California bill would make ‘employee’ the default status unless ‘ABC test’ met
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Thursday, September 12, 2019

California bill would make ‘employee’ the default status unless ‘ABC test’ met

By Payroll and Entitlements Editorial Staff

A group of 76 law professors from across the United States is calling on the California governor and legislative leaders to support a proposal that they contend would force “gig” economy giants such as Uber and Lyft to classify their workers as “employees” instead of “independent contractors.”

The professors are touting A.B. 5, which is currently assigned to the California Senate’s Committee on Appropriations. If enacted, A.B. 5 would codify the California Supreme Court’s 2018 decision in Dynamex v. Superior Court, requiring employers to prove that their workers can meet the three-part “ABC test” in order to be lawfully classified as “independent contractors.” The bill would also expand the scope of Dynamex to include unemployment insurance and other labor law protections.

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