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Topics: Small Business Advice
The California State Assembly and Senate recently passed Assembly Bill 5 to make the Supreme Court’s Dynamex decision into law. The bill is awaiting the governor’s signature and will go into effect on January 1, 2020. According to CNBC, “The measure could result in thousands of independent contractors getting classified as employees, making them eligible for minimum wages, overtime pay and workers’ compensation protections.” The current legislation would grant exemptions to certain professionals if they set or negotiate their own rates, communicate directly with customers and make at least twice the minimum wage. Professions that are exempted include insurance agents, real estate agents, hairstylists, lawyers, accountants, graphic designers, marketing professionals, veterinarians, dentists and physicians. The law, if passed, could be a model for laws in other states. Also, photographers, photojournalists, freelance writers, editors or newspaper cartoonists who make 35 or fewer submissions a year are exempted from the employee classification.