Posts by lortizschneider

AB 5 Interview with Lorena Ortiz Schneider

Posted by on Apr 20, 2020 in Blog

AB 5 Interview with Lorena Ortiz Schneider The ATA-TCD interviewed COPTIC founder Lorena Ortiz Schneider on the current status of California Assembly Bill 5. For people outside of California who might not be completely familiar with Assembly Bill 5, would you please explain what this law is about? AB 5 was authored by Assembly member Lorena Gonzalez (D-San Diego) and was enacted into law on January 1, 2020. It sought to codify, even as it expanded, the State Supreme Court Dynamex decision of 2018, a wage order claims decision. Dynamex fired all their employees only to “hire” them back, but as independent contractors. In Dynamex, the State Supreme Court changed California’s long-standing, multi-factor test by which employees are distinguished from independent contractors to a simple one, requiring hiring entities to classify all workers as employees unless they demonstrate that the person is: a) Free from the control and direction of the hiring entity in connection with the performance of the work,b) Performs work that is outside the usual course of the hiring entity’s business, andc) Customarily engaged in an independently established trade, occupation, or business. AB 5 was intended to curb blatant abuses similar to those engaged in by Dynamex, but in so doing, ended up affecting nearly every...

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