California GIG Worker Protections: Regulating the Relationships between Organizations and their GIG Workers

California Assembly Bill 5 (AB5), popularly known as the “Gig Worker” bill, is legislation that was signed into law by Governor Gavin Newson in September 2019 and went into effect on January 1, 2020.AB5 requires companies that hire independent contractors to reclassify them as employees, with few exceptions.Newson argued that when workers are misclassified as independent contractors rather than as employees, they lose basic benefits such as minimum wage, paid sick days, and health insurance.

This labor law extends wage and benefit protections to approximately one million California workers and extends employee classification status to gig workers. This law puts tough restrictions on who can be classified as independent contractors or freelancers rather than employees.Companies utilizing independent contractors need to decide whether to hire them as employees.Although the law affects companies of all sizes and out-of-state businesses that use California contractors, it has a greater impact on the many small businesses that hire independent contractors because of limited staffing budgets. Employers are required to utilize a three-prong test to prove workers are independent contractors, not employees.

Why Should You Attend

California Assembly Bill 5 (AB5), popularly known as the “Gig Worker” bill, is legislation that was signed into law by Governor Gavin Newson in September 2019 and went into effect on January 1, 2020.AB5 requires companies that hire independent contractors to reclassify them as employees, with few exceptions.Newson argued that when workers are misclassified as independent contractors rather than as employees, they lose basic benefits such as minimum wage, paid sick days, and health insurance.

This labor law extends wage and benefit protections to approximately one million California workers and extends employee classification status to gig workers. This law puts tough restrictions on who can be classified as independent contractors or freelancers rather than employees.Companies utilizing independent contractors need to decide whether to hire them as employees.Although the law affects companies of all sizes and out-of-state businesses that use California contractors, it has a greater impact on the many small businesses that hire independent contractors because of limited staffing budgets. Employers are required to utilize a three-prong test to prove workers are independent contractors, not employees.

Areas Covered

Who Will Benefit

This activity has been approved for 1.15 HR (General) recertification credit hours toward aPHR, PHR, PHRca, SPHR, GPHR, PHRi and SPHRi recertification through HR Certification Institute (HRCI). Please make note of the activity ID number on your recertification application form. For more information about certification or recertification, please visit the HR Certification Institute website at www.hrci.org

This program is valid for 1.15 PDCs for the SHRM-CP® or SHRM-SCP®

Your Instructor

Diane L. Dee

Diane L. Dee, President of Advantage HR Consulting, has over 25 years of experience in the Human Resources arena. Diane's background includes experience in HR consulting and administration in corporate, government, consulting and pro bono environments. Diane founded Advantage HR Consulting in early 2016. Under Diane's leadership, Advantage HR provides comprehensive, cost-effective Human Resources solutions for small to mid-sized firms in the greater Chicagoland area.

Diane holds a Master Certificate in Human Resources from Cornell University's School of Industrial and Labor Relations and has attained SPHR, SHRM-SCP, sHRBP and HRPM® certification.

Diane is a member of the National Association of Women Business Owners and the Society for Human Resource Management. Additionally, Diane performs pro bono work through the Taproot Foundation assisting non-profit clients by integrating their Human Resources goals with their corporate strategies.