Maier Law Group Senior Counsel Margarita Wear was recently a guest on the Payfactors Comp and Coffee podcast channel hosted by Bill Coleman and Shawn Lavana. In the podcast, Margarita weighs in on Assembly Bill 5’s contractor vs employee classification laws that took effect in California on January 1, 2020.

Highlights include:

• What is Assembly Bill 5, and the ABC test to determine employee vs independent contractor status (1:47).

• Performing work outside the hiring entity’s usual business — what that means (6:17).

• Exemptions under the AB 5 (10:10).

• Downsides that employers can expect from reclassifying workers as employees or independent contractors (16:15).

• How companies are taking action to be compliant (18:08).

• Applying the ABC test retroactively. (20:44).

• How this affects companies based outside California but with contractors within the state (24:07).

• The possible challenges to businesses in coming years (28:16).

• Some options for employers who don’t pass the ABC test but also don’t need full-time employees (33:04).

And while you are here, do tune in to Jenny Wielgey’s podcast about AB5 must-knows for small businesses!

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