Assembly Bill 5 (AB5) is California’s latest workplace legislation on the classification of workers as either employees or independent contractors. Public agencies should evaluate potential AB 5 impacts on both operations and public policy.
Misclassifying employees as independent contractors is common and carries potentially serious consequences for employers. AB 5 has greatly restricted an employers’ ability to designate workers as independent contractors. Although AB 5’s impact on public employers appears limited, AB 5 does apply to public agencies, and there are a range of potential consequences as this law unfolds.
Public employers should promptly conduct the analysis described below to determine whether workers are correctly classified as employees or independent contractors for purposes of applicable provisions of the Labor Code, the Unemployment Insurance Code, and any wage orders.
These issues often are complex, and agencies should work closely with their legal counsel in making these assessments. RGS has compiled a white paper to assist agencies in starting down the path of determining how AB5 relates to their current employee base.
RGS White Paper – AB5: A Practical Guide for Public Administrators
Topics covered in the white paper include:
- Introduction to Assembly Bill 5 (AB5)
- Challenges of the ABC Test
- Exemptions From the ABC Test
- Important Agency Actions to Manage AB5 Risks
- Agency Next Steps
- Links to Full Legislative Text
- Checklists for Employee Classification Processes
- Sample Policy for Contract Management Responsibility