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California's Governor Gavin Newsom has signed into law Assembly Bill 5, a bill significantly altering the standard for classifying a worker as an employee versus an independent contractor.
California’s Governor Gavin Newsom has signed into law
Assembly Bill 5, a bill significantly altering the standard for
classifying a worker as an employee versus an independent
contractor. Taking effect January 1, 2020, the law creates a much
more difficult standard for employers to meet to establish that a
worker is an independent contractor, rather than an employee. Under
California law, misclassifying a worker as an independent
contractor rather than as an employee can subject the employer to
significant liabilities, including criminal liability.
Companies must start now to prepare for this sweeping change or
risk the consequences of independent contractor misclassification.
BakerHostetler has developed The Playbook with practical,
immediately actionable steps businesses can take. The Playbook presents a
number of detailed options for companies of all sizes and in all
sectors.
Know where you stand. Consider your strategies. Be ready to move
forward without disruption.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.