Since Gov. Gavin Newsom approved a new law making it easier to classify gig economy workers as “employees,” a number of new legislative and legal challenges to the law have popped up that could limit the impact of the new law.
In September 2019, the new governor signed his first piece of landmark legislation – Assembly Bill 5. The bill codified the “ABC Test” from the California Supreme Court decision in Dynamex v. Superior Court, which says that a worker is an employee if they do not meet all of the following three conditions:
- The worker is free from the control and direction of the hiring entity in connection with the performance of the work;
- The worker performs work that is outside the usual course of the hiring entity’s business;
- The worker is customarily engaged in an independently established trade, occupation, or business.