Pending Major Worker Reclassification Law Aims to Burst California's "Gig Economy" Bubble

Overview

On September 11, 2019, the California Senate passed Assembly Bill 5, which California Governor Gavin Newsom is expected to sign. The law will have major implications on the so-called “gig economy” workers, potentially leading to many being reclassified as employees rather than independent contractors. This article addresses questions businesses and employers in California and elsewhere may have concerning the Bill that is surely to be adopted by many jurisdictions. We also provide one practical solution to these employee-misclassification issues.

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