2020 CA Employment Law Updates

Each new year brings about new changes in employment law. Governor Gavin Newsom signed into legislation a number of new laws that impact California employers. Here’s what to look for in 2020:

AB 5 – New Employee Classification Test: The law codifies and modifies the California Supreme Court’s “ABC test” from its decision in the Dynamex case. The law severely limits the ability of California companies to classify workers as independent contractors rather than employees. Stated in an abbreviated manner, to satisfy the ABC test and classify a worker as an independent contractor, the company must prove that the worker is (A) free from the company’s control, and (B) performs work outside the company’s primary business, and (C) is regularly engaged in the trade the worker is hired for, independent of work for the company. There are specific exemptions for certain industries.

AB 9 – Statute of Limitations for FEHA Claims Expanded: The...

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