Toni Jaramilla, A Professional Law Corporation - Los Angeles Employment Attorney Toni Jaramilla, A Professional Law Corporation - Los Angeles Employment Attorney
Learn About Your Options Today 310-551-3020

California passes major employment law overhaul

California lawmakers have passed Assembly Bill 5, a measure that reporters are already saying will overhaul the landscape of employment law in this state. The measure now awaits the signature of the Governor. The Governor has been supportive of this Bill.

The law will codify a recent decision by the California Supreme Court, which makes it very difficult for companies in this state to classify their workers as independent contractors. Some of the most famous companies that use this model include so-called platform-based companies, like Uber, Lyft and companies that connect drivers with those who need food or packages delivered. They are not exempt from the provisions of Assembly Bill 5, although some other trades and professions are.

The upshot of this Bill goes to the heart of what is frequently a controversy in the world of employment law. Independent contractors do not get the benefit of overtime, minimum wage protections and the like, as they are, in theory, paid by the job. As a result, an independent contractor may have a much harder time making a claim for unpaid wages or for the denial of other benefits guaranteed to "employees" in California.

The Bill also put some additional strict provisions behind the law by giving cities and the state the right to sue employers directly for misclassifying workers as independent contractors instead of employees. Among other things, this enforcement mechanism means that employers in this state cannot force an employee's misclassification claim into arbitration, a process which critics say favors employers.

No Comments

Leave a comment
Comment Information

Contact Us Today

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Toni Jaramilla, A Professional Law Corporation
1900 Avenue of the Stars
Suite 900
Los Angeles, CA 90067

Phone: 310-551-3020
Fax: 310-551-3019
Map & Directions