Does AB5 apply to independent contractors?

Gavin Newsom signed new state legislation, Assembly Bill 5 (AB5), into law. Effective January 1, 2020, AB5 affects independent contractors throughout California, radically changing 30 years of worker classification and reclassifying millions as employees.

Are Uber drivers classified as independent contractors or employees?

Currently, the drivers in the United States working for companies such as Uber, Lyft, or Instacart have the employment status of independent contractors. The situation is similar in the case of drivers working for Amazon Flex, which is a delivery service.

Is it fair to classify Uber and Lyft drivers as independent contractors?

Uber and Lyft must reclassify their California drivers as employees, rather than independent contractors, to comply with the state’s strict employee-classification rules, according to a California appeals court.

Who is exempt from CA AB5?

freelance writers, editors, translators, copy editors, illustrators, newspaper cartoonists, still photographers, photojournalists, videographers, and photo editors who (1) work under a written contract that specifies the rate and time of pay, (2) do not directly replace an employee who performed the same work at the …

Is Uber independent contractor in California?

SAN FRANCISCO — A California judge ruled unconstitutional a ballot measure from last November defining Uber and Lyft drivers as independent contractors, throwing fresh uncertainty into the status of the hundreds of thousands of app-based workers.

What does AB5 mean for independent contractors?

California Assembly Bill 5 (AB5) extends employee classification status to some gig workers. Under AB5, companies must use a three-pronged test to prove workers are independent contractors, not employees. 1. AB5 was designed to regulate companies that hire gig workers in large numbers, such as Uber, Lyft, and DoorDash.

Can I be an independent contractor in California?

An individual is an independent contractor in California only if they meet all three (3) requirements of the test: The worker remains free from managerial direction and control related to the worker’s performance. The worker performs duties outside the scope of the company’s course of business.

What is an employee vs independent contractor?

A business may pay an independent contractor and an employee for the same or similar work, but there are important legal differences between the two. For the employee, the company withholds income tax, Social Security, and Medicare from wages paid. For the independent contractor, the company does not withhold taxes.

Are Uber drivers independent contractors California?

that declared drivers for the companies were independent contractors. Proposition 22, which passed in a statewide vote in November, exempts the so-called gig economy businesses from a state labor law requiring more companies to hire workers as employees and provide them benefits.

Can Californians be independent contractors?

Are Uber drivers considered employees of Uber?

A California judge on Friday ruled that a 2020 ballot measure exempting gig companies from providing benefits for its workers is unconstitutional, the Sacramento Bee reports.