Escondido Chamber Invites Dan Eaton to Speak on AB 5
SCMV Shareholder Dan Eaton recently spoke at an event hosted by Escondido Chamber of Commerce about the new Assembly Bill 5, which took effect January 1.
AB5 broadens the “ABC test” beyond violations of the state’s wage orders, narrows the types of work to which that test applies and authorizes the city attorneys of big California cities, including San Diego, to sue hiring entities to enforce the new law.
The ABC test at the heart of AB 5, sponsored by San Diego Assembly member Lorena Gonzalez Fletcher, comes from the California Supreme Court’s ruling in Dynamex Operations West Inc. v. Superior Court. The ABC test as distilled in AB5 prohibits a hiring entity from classifying a worker as an independent contractor unless the hirer can establish that:
a) The hiring entity does not control or direct the worker in performing the work in fact or under the terms of a contract.
b) The work performed is outside the “usual course” of the hiring entity’s business.
c) The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
It is important to note that certain industries are exempt from using the ABC test.
SCMV will be hosting a complimentary presentation on AB 5 for San Diego employers on Tuesday, February 4, noon at our offices. If you’d like more information, please emai email@example.com.
Additionally, more information regarding AB 5 can be found in Dan’s Law at Work column in the San Diego Union-Tribune here.