AB-5 Independent Contractor Law

WHAT IS AB-5?

On September 18, 2019, California Governor Gavin Newsom signed into law A.B. 5. It is one of the most significant disruptions to California employment law in decades.

WHO DOES IT AFFECT?

Every company that uses independent contractorrs, freelancers, or 1099 workers.

WHEN DOES IT START?

The law is in effect, as of January 1, 2020, you should determine whether you will need to reclassify some independent contractors to employee status ASAP.

WHAT ARE CONSEQUENCES?

Failing to convert or take any action can leave you exposed to EDD and IRS audits, lawsuits, and labor claims.

DOWNLOAD AB-5 CONVERSION HANDOUT

LEGAL TIP

California law presumes that all workers are employees. The burden is on the employer to prove they are independent contractors.

HOW WE CAN HELP

Book one of our three service plans to help mitigate your legal claims or to find out how you can secure your ability to remain an independent contractor.

A

ANALYSIS

Our employment law attorneys will analyze and review your job description to determine whether a worker should be classified as an independent contractor or employee under AB5.

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BUILD

B

Our employment law attorneys will build a custom Independent Contractor Agreement that fits the needs of your business and is AB5 compliant.

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CONVERT

C

Our Employee Conversion Kit provides you with 20 attorney-created forms that you can use to build a personnel file for your employees from the time of hire to separation. Includes a one-hour bonus phone call with our employment attorneys to explain the forms and answer your questions.

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RESOURCES

Check out some speaking engagements and podcasts we have participated in, speaking on the issues related to AB5. If you would like to book Jennifer Grady for your next event contact info@gradyfirm.com. Read more about why it's not recommended to do this yourself.