Worker status: employees and independent contractors.
Existing law, as established in the case of Dynamex Operations W. Inc. v. Superior Court (2018) 4 Cal.5th 903 (Dynamex) , creates a presumption that a worker who performs services for a hirer is an employee for purposes of claims for wages and benefits arising under wage orders issued by the Industrial Welfare Commission. Existing law requires a 3-part test, commonly known as the "ABC" test, to establish that a worker is an independent contractor for those purposes. AB 5 of the 2019–20 Regular Session states the intent of the Legislature to codify the decision in the Dynamex case and clarify its application. AB 5 provides that for purposes of the provisions of the Labor Code, the Unemployment Insurance Code, and the wage orders of the Industrial Welfare Commission, a person providing labor or services for remuneration shall be considered an employee rather than an independent contractor unless the hiring entity demonstrates that the person is free from the control and direction of the hiring entity in connection with the performance of the work, the person performs work that is outside the usual course of the hiring entity's business, and the person is customarily engaged in an independently established trade, occupation, or business. AB 5 also exempts specified occupations from the application of Dynamex, and would instead provide that these occupations are governed by the test adopted in S. G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341 (Borello) .
us/states/ca
California Legislature
20192020
AB 170
California AB 170 (20192020)
bill
Worker status: employees and independent contractors.
California AB 170 (20192020) — Worker status: employees and independent contractors.
Existing law, as established in the case of Dynamex Operations W. Inc. v. Superior Court (2018) 4 Cal.5th 903 (Dynamex) , creates a presumption that a worker who performs services for a hirer is an employee for purposes of claims for wages and benefits arising under wage orders issued by the Industrial Welfare Commission. Existing law requires a 3-part test, commonly known as the "ABC" test, to establish that a worker is an independent contractor for those purposes. AB 5 of the 2019–20 Regular Session states the intent of the Legislature to codify the decision in the Dynamex case and clarify its application. AB 5 provides that for purposes of the provisions of the Labor Code, the Unemployment Insurance Code, and the wage orders of the Industrial Welfare Commission, a person providing labor or services for remuneration shall be considered an employee rather than an independent contractor unless the hiring entity demonstrates that the person is free from the control and direction of the hiring entity in connection with the performance of the work, the person performs work that is outside the usual course of the hiring entity's business, and the person is customarily engaged in an independently established trade, occupation, or business. AB 5 also exempts specified occupations from the application of Dynamex, and would instead provide that these occupations are governed by the test adopted in S. G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341 (Borello) .
Version chain
The bill's text revisions, in order — the diff chain from filing to enrollment.
Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary] — 4–1 (pass) · upper
AB 170 Gonzalez Concurrence in Senate Amendments — 66–6 (pass) · lower
Do pass and be re-referred to the Committee on [Judiciary] — 5–1 (pass) · lower
3rd Reading AB170 Gonzalez et al. By Mitchell — 38–1 (pass) · upper
Sponsors
Gonzalez — primary (person)
Hertzberg — coauthor (person)
McGuire — coauthor (person)
Mitchell — coauthor (person)
Timeline
The legislative action history — every referral, reading, and vote.
2019-01-08 Read first time. To print. reading-1
2019-01-09 From printer. May be heard in committee February 8.
2019-01-24 Referred to Coms. on L. & E. and JUD. referral-committee
2019-03-07 From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 1.) (March 6). Re-referred to Com. on JUD. committee-passage-favorable, committee-passage, referral-committee
2019-03-12 In committee: Set, first hearing. Hearing canceled at the request of author.
2019-03-21 From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended. reading-1, reading-2, amendment-passage, amendment-introduction
2019-03-25 Re-referred to Com. on JUD. referral-committee
2019-03-28 From committee: Amend, and do pass as amended. (Ayes 8. Noes 3.) (March 26). amendment-passage, committee-passage, amendment-introduction
2019-04-01 Read second time and amended. Ordered returned to second reading. amendment-passage, reading-1, reading-2
2019-04-02 Read second time. Ordered to third reading. reading-1, reading-2
2019-04-22 Read third time. Passed. Ordered to the Senate. (Ayes 49. Noes 17. Page 1250.) passage, reading-3, reading-1
2019-04-23 In Senate. Read first time. To Com. on RLS. for assignment. reading-1
2019-05-01 Referred to Coms. on L., P.E. & R. and JUD. referral-committee
2019-06-12 From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 4. Noes 1.) (June 12). amendment-passage, committee-passage, amendment-introduction
2019-06-13 Read second time and amended. Re-referred to Com. on JUD. reading-1, reading-2, amendment-passage, referral-committee
2019-07-03 From committee: Do pass. (Ayes 7. Noes 2.) (July 2). committee-passage-favorable, committee-passage
2019-07-05 Read second time. Ordered to third reading. reading-1, reading-2
2019-08-20 Read third time and amended. Ordered to second reading. amendment-passage, reading-3, reading-1
2019-08-21 Read second time. Ordered to third reading. reading-1, reading-2
2019-08-21 Re-referred to Com. on APPR. pursuant to Joint Rule 10.5. referral-committee
2019-08-26 From committee: Be ordered to second reading pursuant to Senate Rule 28.8. committee-passage, reading-2
2019-08-27 Read second time. Ordered to third reading. reading-1, reading-2
2019-09-10 Read third time and amended. Ordered to second reading. amendment-passage, reading-3, reading-1
2019-09-11 Read second time. Ordered to third reading. reading-1, reading-2
2019-09-11 Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(c). referral-committee
2019-09-11 Re-referred to Com. on L., P.E. & R. referral-committee
2019-09-12 From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (September 12). Re-referred to Com. on APPR. committee-passage-favorable, committee-passage, referral-committee
2019-09-12 From committee: Be ordered to second reading pursuant to Senate Rule 28.8. committee-passage, reading-2
2019-09-12 Read second time. Ordered to third reading. reading-1, reading-2
2019-09-13 Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 1. Page 2934.). passage, reading-3, reading-1
2019-09-13 In Assembly. Concurrence in Senate amendments pending.
2019-09-13 Re-referred to Com. on L. & E. pursuant to Assembly Rule 77.2. referral-committee