California Assembly Bill 5 (AB 5)

California Assembly Bill 5 (AB 5), enacted in January 2020, redefined the classification of workers as employees or independent contractors. It introduced a stricter "ABC test" to determine if a worker can be classified as an independent contractor. Under this test, workers must meet three criteria to be considered independent, making it harder for many gig economy workers, like Uber and Lyft drivers, to qualify. The law aims to provide greater labor protections, benefits, and job security to workers who are often classified as independent contractors. It has sparked ongoing debates about its impact on businesses and the gig economy.