The most widely reported legislation passed in 2019 was Assembly Bill 5, which was effective January 1, 2020 and codified new standards to determine whether a worker is an employee or an independent contractor. AB 5 incorporated the “ABC Test” introduced in 2018 by the California Supreme Court in Dynamex Operations West, Inc. v. Superior Court of Los Angeles. The ABC Test presumes that all workers are employees, which means that the company hiring them must prove that workers meet all of the following three conditions to properly classify them as independent contractors:
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