California 2019-2020 Regular Session

California Assembly Bill AB1925

Introduced
1/14/20  
Refer
2/14/20  

Caption

Worker status: independent contractors: small businesses.

Impact

If passed, AB 1925 would impact how small businesses determine the classification of those providing services. By expanding exemptions from the ABC test, the law would allow small businesses to classify certain workers as independent contractors. This change is expected to benefit small business operations by providing more flexibility and potentially reducing costs associated with employee benefits and employer taxation. However, the expansion of these exemptions could reduce worker protections for individuals misclassified as independent contractors.

Summary

Assembly Bill 1925, introduced by Assembly Member Obernolte, seeks to amend Section 2750.3 of the California Labor Code, specifically focusing on the classification of independent contractors and their relationship with small businesses. This bill arises in the context of existing laws established by the Dynamex Operations W. Inc. v. Superior Court case which created a presumption that workers providing services are employees unless specific criteria, known as the ABC test, are met. The bill aims to expand exemptions from the applicability of the Dynamex ruling to include small businesses, thus easing the regulatory burden on them regarding worker classification.

Contention

The legislation has sparked discussions about the balance between business interests and worker protections. Advocates for small businesses argue that the bill would help maintain job flexibility and reduce the costs associated with hiring employees. On the other hand, worker advocates express concern that this change may lead to greater exploitation and insufficient support for independent contractors who may lack access to benefits, such as health insurance and workers' compensation. The debate centers around ensuring fair treatment of workers while fostering a favorable environment for small business growth.

Companion Bills

No companion bills found.

Previously Filed As

CA AB224

Worker status: employees and independent contractors: newspaper distributors and carriers.

CA AB1928

Worker classification: employees and independent contractors.

CA SB451

Worker classification: employees and independent contractors: licensed manicurists.

CA SB881

Paid sick days: accrual and use.

CA AB3190

Public works.

CA SB1503

Cannabis: workers and license requirements.

CA SB525

Minimum wages: health care workers.

CA SB828

Minimum wages: health care workers: delay.

CA SB988

Freelance Worker Protection Act.

CA SB1071

Contractors: workers’ compensation insurance.

Similar Bills

CA SB868

Worker status: independent contractors: freelance journalists.

CA SB990

Worker status: independent contractors: transportation network companies.

CA AB2497

Worker status: independent contractors: livestock judges.

CA AB1850

Worker classification: employees and independent contractors.

CA AB2257

Worker classification: employees and independent contractors: occupations: professional services.

CA SB967

Worker status: independent contractors: franchiser and franchisees.

CA AB2489

Worker status: employees: independent contractors: health care providers: COVID-19.

CA AB2793

Worker status: independent contractors.