Chicago Business Litigation Lawyer Blog
In what is expected to shake up the entire “gig” industry in California, Governor Gavin Newson recently signed into law a bill that rewrote the rules of employment law as it relates to using independent contractors in California. The new law, known as Assembly Bill (AB) 5, is expected to grant hundreds of thousands of workers new job benefits and pay guarantees across numerous industries including ride-hailing companies, trucking, janitorial services, nail salons, adult entertainment, construction, media, and healthcare.
Assembly Bill 5, which curbs businesses’ use of “independent contractors,” gained final approval in the state Senate and state Assembly, largely along partisan lines. Independent contractors, some of whom work for multibillion-dollar technology companies, are generally not covered by minimum wage, overtime, sick leave, family leave, or workers’ compensation laws. Nor do businesses pay into Social Security or Medicare for the independent contractors they retain. Continue reading ›