California Assembly Appropriations Committee Makes Minor Changes to AB5 Related to Unemployment Insurance

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Executive Summary Assembly Bill AB5 has been amended again, this time to include appropriations specific language. Analysis On May 1, 2019, Assembly Bill AB5 was amended to include certain appropriations related changes. More specifically, the bill now includes specific references to unemployment insurance provisions. As an example: Existing law, for purposes of unemployment insurance provisions, requires employers to make contributions […]

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California Assembly Labor and Employment Committee Passes AB5 on Party Lines

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Executive Summary The California Assembly Labor and Employment Committee passed AB5 along party lines. The bill now moves to the Assembly’s Appropriations Committee for consideration. Analysis On April 30, 2019, California Assembly Labor and Employment Committee passed AB5 as amended on March 26, 2019. Votes were as follows: Ayes Wendy Carillo (D) – 52nd Assembly District Lorena Gonzalez (D) – […]

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Department of Labor Introduces Proposed Rulemaking on Joint Employer Status Under FLSA Date

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Executive Summary The Department of Labor (“DOL”) submitted a notice of proposed rulemaking that would rollback the determination of joint employer status under the Fair Labor Standards Act (“FLSA”) to pre-Obama standards. In doing so, the DOL specifically recognized and addressed concerns raised by the franchise industry. Analysis On April 1, 2019, the DOL submitted a notice of proposed rulemaking […]

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California Assembly Proposes Carve Out of Certain Industries From “ABC” Test Through AB5 Amendment

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Executive SummaryAssembly Bill AB5 has been amended to include carve outs for certain industries from the Dynamex “ABC” test and reversion back to the Borello test for those industries. AnalysisOn March 26, 2019, AB5 was amended to explicitly include the “ABC” test and preclude the application of the “ABC” test to certain industries. Those industries include the following: (1) A […]

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California Assembly Introduces Bill To Codify Dynamex “ABC” Test

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Executive Summary The California Assembly has introduced a bill to “codify” the “ABC” test recently established in the case of Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018) 4 Cal.5th 903 and “clarify its application.” Analysis On December 3, 2018, Democratic Assembly Member Gonzalez introduced the outline of a bill that would codify and clarify the California Supreme Court’s […]

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