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AB 5 ‘Grace Period’ Introduced in New Bill

Every day we wait to take action, more Californians are losing their livelihoods as the result of AB 5’

March 5, 2020 1:37 pm

  1. Assemblyman Kevin Kiley (R-Rocklin) just announced a new bill, AB 2075, to provide a Grace Period for AB 5 compliance through the rest of 2020.“AB 5, in its current form, is causing chaos,” Kiley explained to California Globe. “Even lawyers can’t make heads or tails of it. And everyone, including the author, says major changes are coming. Why on earth would we not allow a brief Grace Period until these changes take effect next year?”Since January 1, Assembly Bill 5 by former labor leader Assemblywoman Lorena Gonzalez (D-San Diego), has already significantly limited Californians’ ability to work as independent contractors and freelancers. It was revealed during Senate debate in September that the AFL-CIO wrote AB 5.“This modest relief provides breathing room while changes to AB 5 are being worked out,” Kiley said.More than 30 bills proposing exemptions for certain industries and other changes to AB 5 have been introduced by legislators of both parties this year. That includes a bill from the author of AB 5, Assemblywoman Lorena Gonzalez, proposing major changes.Kiley says under AB 2075, hiring entities would still be subject to liability for employee misclassification in 2020, but would not face liability under the new ABC Test—adopted in AB 5 and the Dynamex decision—until 2021. This minimal relief has been requested by countless businesses and independent contractors who are currently navigating how to comply with AB 5.The California Legislative Analyst’s Office estimates that AB 5 has already affected more than 1 million independent contractor and freelance working Californians, and the growing list of 300+ industries impacted by the new law.For a sampling of these effects, Assemblyman Kiley’s office compiled a book of AB Stories in January. On January 28, California Globe attended a Rally to Repeal AB 5 at the State Capitol, which drew between 300 and 350 people representing many different industries.Last week, the California Assembly rejected a motion by Assemblyman Kevin Kiley (R-Rocklin) to suspend AB 5 while corrective legislation is under consideration. Kiley’s Assembly Bill 1928 is an urgency measure to repeal AB 5 and would return the legal standard for independent contracting to what it was for decades before AB 5 and the Dynamex decision. Kiley proposed the Legislature suspend those recent changes pending further legislative consideration. Kiley will continue to move forward AB 1928, and he said he still believes repealing AB 5 is the best solution.“Every day we wait to take action, more Californians are losing their livelihoods as the result of AB 5,” Kiley said.

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