US: Employers Continue to Track the AB 5 Independent Contractor Law

California’s AB 5 laws on worker classification went into effect in January, but the regulation continues to come under scrutiny from companies, representatives of freelancers and contractors, and lawmakers. Meanwhile, the California attorney general plans to file an injunction against gig companies to compel them to classify their drivers as employees.

For companies, AB 5 reveals the challenges of interpretation. For example, some truckers will not be subject to the parameters of AB 5, yet a judge in a separate case ruled that the grocery delivery company Instacart was misclassifying some of its workers. While AB 5 is likely to evolve over the next year, it will be difficult to predict the final result.

Takeaway: Regardless of any adjustments to AB 5, companies will need to have a detailed view of which workers are contractors or employees to comply with the law. Achieving an enterprise-level view of who qualifies as an employee and who should be classified as a contractor will remain a challenge, and so managing that worker data should be treated as a priority. AGS provides companies with the needed expertise to gain control of their worker data and help them better address the questions raised by AB 5 or any other worker classification regulations.

US: Employers Continue to Track the AB 5 Independent Contractor Law

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