California’s Governor Gavin Newsom has signed into law Assembly Bill 5, a bill significantly altering the standard for classifying a worker as an employee versus an independent contractor. Taking effect January 1, 2020, the law creates a much more difficult standard for employers to meet to establish that a worker is an independent contractor, rather than an employee. Under California law, misclassifying a worker as an independent contractor rather than as an employee can subject the employer to significant liabilities, including criminal liability.
Companies must start now to prepare for this sweeping change or risk the consequences of independent contractor misclassification. BakerHostetler has developed The Playbook with practical, immediately actionable steps businesses can take. The Playbook presents a number of detailed options for companies of all sizes and in all sectors.
Know where you stand. Consider your strategies. Be ready to move forward without disruption.
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