The California State Assembly recently passed AB5, a measure that is set to provide labor protections to gig economy workers for the first time. The legislation changes the definition of an independent contractor to what’s known as the “ABC test,” which dominated the discussion in the wake of the California Supreme Court decision in Dynamex. According to Vox, the ABC test is as follows:
To hire an independent contractor, businesses must prove that the worker (a) is free from the company’s control, (b) is doing work that isn’t central to the company’s business, and (c) has an independent business in that industry.
AB5 will now go to the California Senate.
Read more here.