California Applies Brakes to Galloping Gig Economy

California Assembly Bill 5, which would require many businesses to hire workers as employees rather than independent contractors, has passed its second reading. After a vote on amendments in a third reading, it likely will go to Governor Gavin Newsom, who has indicated he will sign it. Bill AB 5 extends the so-called ABC test California imposed last year in the Dynamex case, which presumes that all workers are employees eligible for benefits unless their employer establishes that they meet standard criteria for independent contractors.

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