California Assembly Bill 5 (AB5)

California Assembly Bill 5 (AB5), enacted in 2019, aims to reclassify many gig economy workers, contractors, and freelancers as employees rather than independent contractors. This change requires employers to provide benefits, minimum wage, and other protections typically given to employees. AB5 uses a three-part “ABC test” to determine worker classification: the worker must be free from the employer’s control, perform work outside the employer’s core business, and do work that generally isn’t integral to the company. The law seeks to improve worker rights but has faced criticism for potentially limiting gig economy flexibility and freelance work.