The California state assembly passed a bill in May that would make it harder for companies to assign independent contractor status to its part-time workers. The bill is known as AB5 and expands on the Dynamex Supreme Court “ABC Test” decision from last year. Supporters say the bill will provide hundreds of thousands of independent contractors in California the protection of employee status. Critics say the state is interested in the estimated $7 billion it loses in tax revenue from companies that utilize independent contractors. The bill is headed to the state senate next.
California Cracking Down Further on Independent Contractor Status
