Lawrence R. Jensen & Associates
Schedule a Consultation at:
408-465-0293

Assembly Bill 5 changes California's freelance economy

A big part of business strategy is knowing the laws of the places one is conducting trade. California has a long history of legislating the business environment, from early labor protections to modern reactions to the tech industry.

One of the most recent business laws from Sacramento is Assembly Bill 5, which regulates the so-called gig economy. A lot of people who were working as freelance contractors may need to be hired as full-time employees with access to benefits or drastically scale back what they are able to do.

The purpose of the bill is to prevent shortcuts that businesses would take on their taxes by lowering their liability connected to full-time employees. The law created an "ABC test" to determine if a worker should be full time, which asks about the type of work and how long a person spends doing it for a specific firm.

Small businesses may end up bearing the brunt of this law's enforcement. Many businesses could not afford to get a lot done with full-time employees because of insurance, benefits and other expenses related to maintaining them. Some people previously relying on contract work to maintain a freelance career may also need to look into other ways to earn income.

Anyone with complicated questions about business law may consult an attorney or retain one over a long period of time. Legal representation can be very helpful for activities in a changing business environment. A lawyer can help protect a business' interests as California and its municipalities alter their laws to change with the times.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help You?

Contact the Firm

Bold labels are required.

Contact Information
disclaimer.

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.

close

Privacy Policy

This site uses Google's Invisible reCAPTCHA, which is subject to Google's Privacy Policy and Terms of Use.

Lawrence R. Jensen & Associates
95 S. Market St.
Ste. 550
San Jose, CA 95113

Phone: 408-465-0293
Fax: 408-899-2403
San Jose Law Office Map

Super-Lawyer Avvo Top Attorney Real Estate 9.3 Avvo Clients' Choice 2012 Real Estate
Back to top