AB5 Amendments Adds Industry Carve-Outs and Shifting Criteria for Independent Contractor Classification

Executive Summary The California Senate has amended AB5 rolling back some previous amendments related to certain industries such as hairstyling and adding in new industries that would be carved out from the Dynamex “ABC” test. No direct franchising at large amendment has been included yet. Analysis On July 11, 2019, the California Senate Committee on Labor, Public Employment and Retirement amended AB5. […]

California Senate Labor, Public Employment and Retirement Committee Passes AB5 Without Amendment

Executive Summary The California Senate Labor, Public Employment and Retirement passed AB5 along party lines. The bill now moves to the Senate’s Appropriations Committee for consideration. Analysis On July 10, 2019, California Senate Labor, Public Employment and Retirement Committee passed AB5 without amendment. Votes were as follows: Ayes Gerald Hill (D) – 19th Senate District Hannah-Beth Jackson (D) – 19th […]

California Assembly Amendment Restyles AB5, but Narrowly Misses Franchise Exemption in Trimming the “ABC” Test

Executive Summary The California Assembly has amended AB5 significantly and added several industry carve outs to the Dynamex “ABC” test, but it did not make any changes that directly relate to the franchise industry. Analysis On May 24, 2019, the California Assembly amended AB5 significantly, carving out more industries and professions from the Dynamex “ABC” test and stating explicitly that the Borello test–either as is or […]

California Assembly Appropriations Committee Passes AB5

Executive Summary The California Assembly Appropriations Committee passed AB5 along party lines. The bill now moves to the Assembly at large for consideration. Analysis On May 16, 2019, California Assembly Appropriations Committee passed the AB5 as amended on May 1, 2019. Votes were as follows: Ayes Richard Bloom (D) – 50th Assembly District Rob Bonta (D) – 18th Assembly District […]

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

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 […]

California Assembly Labor and Employment Committee Passes AB5 on Party Lines

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) – […]

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

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 […]

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

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 […]

California Assembly Introduces Bill To Codify Dynamex “ABC” Test

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 […]