AB 5 Frequently Asked Questions for Farmers & Ranchers
What is AB 5?
Assembly Bill 5 codifies and expands the reach of a test—first imposed by the California Supreme Court in its 2018 Dynamex decision—to determine the legal relationship of a worker and an entity hiring that worker. AB 5 takes effect on Jan. 1, 2020.
What was the Dynamex decision?
Dynamex established a new test for determining whether a worker is an employee of an entity hiring the worker, and thus covered by provisions of the applicable wage order of the California Industrial Welfare Commission (IWC). If not an employee, the worker is an independent contractor and not covered by a wage order.What is the new test? Under the Dynamex “ABC” test, a worker is presumed to be an employee unless the hiring entity establishes all three of these conditions:A-Under the contract for the performance of the work and in performing the work, the worker is free from the entity’s control and direction.B-The work performed by the worker for the entity is outside its usual course of business. C-The worker is customarily engaged in an established trade, occupation, or business of the same nature as that involved in the work performed.
Continue reading the FAQ from California Farm Bureau Federation by clicking here.
