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Managing the Modern Workplace
V&E International Labor & Employment Resources

So Long Side-Hustle? – California Aims to Reshape “Gig Economy” With Bill AB 5

Last Wednesday, the California legislature passed bill AB 5, a sweeping measure sure to impact the “gig economy” and any business that likens itself the “Uber of _____.”  If signed into law (and the governor has already signaled his intention to sign it), AB 5 would require many companies to re-classify as “employees” many workers who are currently classified as independent contractors, so long as they satisfy certain criteria. AB 5 could force drastic changes to many companies’ business models, requiring them to abide by state minimum wage laws, and to pay payroll taxes, premiums for workers’ compensation, Social Security, unemployment, and disability insurance for their employees’ benefit. Companies impacted would also need to provide their workers the ability to collectively organize under the protections of federal labor laws. 

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Thomas H. Wilson

Thomas H. Wilson Partner

Christopher V. Bacon

Christopher V. Bacon Counsel

Sean Becker

Sean Becker Partner

Stephen M. Jacobson

Stephen M. Jacobson Partner

Martin C. Luff

Martin Luff Counsel

Lawrence S. Elbaum Partner