On January 1, 2020, a new law took effect in California that made big changes to the state’s worker classification requirements [A.B. 5, 2019]. The California Labor and Workforce Development Agency has launched the Employment Status Portal to provide information for workers and employers on the requirements of the new law.
A.B. 5 requires the application of the employee-friendly ABC test to determine if workers are employees or independent contractors for the purposes of state labor and unemployment insurance law and Industrial Welfare Commission Wage Orders.
The portal contains FAQs about A.B. 5, including an explanation of the ABC test, how the ABC test is applied to worker relationships, and employer penalties for misclassifying workers. Additional employer resources will be added to the portal.
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Lia Coniglio, Esq., is Managing Editor of PayState Update and Manager of State Payroll Information Resources for the APA.