AB5: Initial Impact of the Law for Consultants

Description

Learn about the impact of AB 5, the California law that took effect on Jan. 1, 2020.

The intent of the new law was to codify the California Supreme Court’s Dynamex decision, which aimed to prevent companies from classifying employees as contractors to avoid paying benefits. Members of the “gig economy,” such as drivers for Uber and Lyft, were also supposed to benefit from the law.

However, AB 5 impacts most Californians who work as consultants or independent contractors or hire consultants and contractors, including many Women In Consulting members. If certain conditions are not met, this new law could make it very difficult for many to continue working as independent consultants in California. The heart of AB 5 creates a three-part criteria for determining if someone is an independent contractor. Further, AB 5 provides a list of 12 conditions an entity needs to meet to qualify as a “Business Service Provider” (BSP).

Jahmal T. Davis and Jennifer L. Yazdi from Hanson Bridgett present and answer questions specific to help us understand how we can maintain our status as independent consultants or our businesses as companies that hire independent consultants. (Note: This talk is about the initial issues and is from December, 2019.)

About the Presenters

Jahmal T. Davis chairs the labor and employment section at Hanson Bridgett. He is a trial lawyer who specializes in employment law, representing public and private employers in state and federal employment litigation. His litigation and trial work encompasses all aspects of employment-related claims, including discrimination, harassment, whistleblower, retaliation and wrongful termination. Jahmal’s practice includes defending employers with regard to administrative claims, regulatory actions, and audits by state and federal taxing authorities, such as the California Employment Development Department (EDD), and the Internal Revenue Service. Jahmal also represents employers in union-initiated grievance arbitrations. Jahmal provides preventive advice and training to clients, and he conducts internal investigations of employment-related disputes. His preventive advice and counseling includes reviews and audits of employer policies and practices. Jahmal has conducted numerous exempt/non-exempt classification audits for large and small employers.

Jennifer L. Yazdi represents private and public employers in federal and state court litigation and before administrative agencies regarding discrimination (including race, sex, age, national origin, sexual orientation, and disability), harassment, retaliation, breach of contract, wrongful termination, and numerous other types of employment law matters. In addition to her litigation practice, Jennifer counsels employers on a wide variety of employment issues, such as hiring practices, employment policies, disability accommodations and leave administration, employee and contractor classification issues, employment contracts, enforceability of covenants not to compete, leaves of absence, terminations, and reductions in force. She specializes, in particular, in advising organizations on the evolving laws and regulations surrounding worker classification since the California Supreme Court Dynamex decision. In addition to general advice and counseling, Jennifer handles sensitive harassment and whistleblower internal investigation.