What Associations Should Know About California’s AB 5
Under the law, many previous contractors must be considered employees now
California’s Assembly Bill 5 (AB 5), a measure passed last year that codifies standards for whether workers are classified as employees or contractors, has created confusion and concern at a lot of organizations, including associations.
Under the law, which took effect January 1, many workers who had previously been considered contractors must be treated as employees, meaning the employer must extend to them labor protections and benefits that apply to traditional employees. The measure has particularly affected fields that rely heavily on contract work, such as journalism and the arts, and led to lawsuits, some of which associations are taking part in.
Many affected organizations are pinning their hopes on changes that may be made to the law. Andrea R. Milano, a lawyer with the employment and labor practice at Pillsbury Winthrop Shaw Pittman LLP, said that while amendments may come, that process will take some time.
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