With the stroke of Gov. Gavin Newsom’s pen, the sweeping California employment law limiting businesses’ use of independent contractors has become law and will go into effect Jan. 1, 2020.
Assembly Bill 5 had the overwhelming support of the state legislature, and the governor’s signature was widely anticipated, as his office had already voiced support for the measure.
Orange County employment lawyers know the goal is to reduce instances of worker misclassification, which is when employees are improperly designated as “independent contractors” rather than “employees,” which deprives them of a host of basic protections afforded to employees, such as:
- Minimum wage;
- Sick days;
- Health insurance benefits;
- Meal breaks;
- Rest breaks;
- Workers’ compensation insurance.