The Debate over Worker Classification in California: CA AB-5 and Beyond

Who should be considered an independent contractor vs. an employee? California AB-5 was signed into state law in early 2020 – and re-classified many independent contractors as employees subject to California employment regulations. The debate continued, however, and on November 3rd, 2020, Californians voted “yes” to an exemption to AB-5 – on the ballot as Proposition 22 – which determined that app-based ridesharing and delivery drivers are permitted to function as independent contractors. What about other independent contractors? What other industries should be subject to – or exempt from – CA-AB5? Questions continue.

Bruce Sarchet is a Shareholder at Littler Mendelson P.C.