Happy MLK Day and Some News on AB-5

First off, dear readers, a very happy Martin Luther King Jr. day to one and all.

But speaking also about workers’ comp for those stuck at work today…

As a new week opens up, the world of California workers’ compensation continues to rock and sway from the start of the new decade. 

Among the topics coming up with some regularity is AB-5.  Several industries are valiantly trying to stop some or all of its implementation through the courts.  Meanwhile, there is at least some stirring of activity in Sacramento trying to blunt at least some of the impact of AB-5, which raises the bar almost insurmountably for retaining an independent contractor rather than, often unwillingly, hiring an employee. 

Assembly Bill 1925 has been introduced by Assemblyman Jay Obernolte to limit the application of AB-5 and create an exemption for small businesses.  AB1925 would define a “small business” as independently owned and operated, not dominant in its field of operation, having fewer than 100 employees, and have an average of gross receipts at $15 million or less for the previous three years. 

The bill was just introduced about a week ago, so it’s going to take some time for it to be considered by the legislature, let alone voted upon or signed by the Governor.  However, your humble blogger, high upon his soap box, highly endorses any movement into freeing up businesses and workers to make their own contracts and agreements. 

Please bear in mind, dear readers, as good as it might have felt for the folks in Sacramento to strike a blow against “evil” UBER, the fall-out from AB-5 has not been a feather in anyone’s cap.  I’m sure the attorneys litigating this in the courts are laughing all the way to the bank from the billable hours involved, but the news has also included freelance journalists being laid off.   Accordingly, any reduction in the legislation’s scope is gain. 

Here’s hoping AB1925 will see swift review and approval by Sacramento!  

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