AB 5, which codifies the California Supreme Court’s ruling in Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal.5th 903, has been signed by the Governor. Under this new law, most California workers are presumed to be an employee for purposes of the Labor Code, the Unemployment Insurance Code, and for the wage orders of the Industrial Welfare Commission.
While this is a huge shift, there are pages of exemptions from the new requirements for numerous specified occupations (e.g., doctors and accountants), professional services (e.g., Enrolled Agents, marketers), business-to-business contracting, certain construction subcontractors, and more.
The full text of the bill may be found at:
Attend Spidell’s Federal and California Tax Update Seminar for detailed coverage of AB 5, including all the specific exemptions, the effective dates of various provisions, new enforcement mechanisms, and more. Click here for more information on the seminar, or see below for a list of locations.