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AB5, the bill that defines how California employers differentiate between employees and contractors, is under fire from several organizations.

An Initiative To Overturn AB5 For On Demand Drivers

On January 2, 2020, the California Attorney General released information about proposed Initiative 19-0026, which seeks to overturn AB5 for “app-based” delivery and transportation drivers. To get this initiative on the ballot, nearly 625,000 verified signatures must be obtained. The initiative, which is primarily sponsored by Lyft, Uber and DoorDash, states that it intends to establish:

“Different criteria for determining whether app-based transportation (rideshare) and delivery drivers are "employees" or "independent contractors." Independent contractors are not entitled to certain state-law protections afforded employees—including minimum wage, overtime, unemployment insurance, and workers' compensation. Instead, companies with independent contractor drivers will be required to provide specified alternative benefits, including minimum compensation and healthcare subsidies based on engaged driving time, vehicle insurance, safety training, and sexual harassment policies. Restricts local regulation of app-based drivers; criminalizes impersonation of such drivers; requires background checks.”

Rally To Repeal

California Assemblyman Kevin Kiley opposes AB5. He helped organize a “Rally to Repeal” the state law. It will be held be on January 28 on the northern steps of the California State Capitol building at 10am. Following the rally, attendees are encouraged to visit their representatives and explain how the law affects them.

Kiley also introduced Assembly Bill 1928 to repeal AB5. It states: “This bill would repeal those existing provisions and instead require a determination of whether a person is an employee or an independent contractor to be based on the specific multifactor test set forth in Borello, including whether the person to whom service is rendered has the right to control the manner and means of accomplishing the result desired, and other identified factors. The bill would make related, conforming changes.
This bill would declare that it is to take effect immediately as an urgency statute.”

Protect App-Based Drivers & Services

A website known as Protect App-Based Drivers & Services asks visitors to support independent drivers and oppose AB5. The group is said to be comprised of a “coalition of on-demand drivers and network companies, small businesses, community groups and public safety organizations.”

According to the site, AB5 “jeopardizes the freedom of hundreds of thousands of Californians to choose to work as independent contractors with app-based rideshare and delivery network platforms, and threatens the availability of these on-demand services that millions of Californians rely on daily.”

Visitors to the site are asked to join and show their support. Upon joining, individuals will receive auto-dialed calls and texts with updates about the campaign to repeal AB5. Learn more.

Takeaway For California Employers

AB5 is currently in effect, so employers in California should be familiar with this law. If you haven’t done so yet, you may wish to consult with your legal counsel to ensure your organization is in compliance.

Whether you’re bringing on employees or contractors, an essential part of the hiring process is running comprehensive background checks. They provide the information employers need to make informed decisions, demonstrate due diligence and create safe workplaces.

When you’re ready to screen candidates, please contact us. Our experienced team will help you build custom background check packages for any type of position. We are available to assist you Monday through Friday from 5am to 6pm PT.