Join the SF Chamber for an informative presentation on AB5. Learn how partnering with Adecco enables you to comply with AB5 and retain the labor flexibility you need.
AB5, also commonly referred to as the “gig worker law,” went into effect January 1, 2020. As a result, businesses/employers must consider new hires as employees, and not independent contractors, unless a new hire meets all of the following criteria:
The worker is free to perform services without the control or direction of the company both under the contract and in fact.
The worker is performing work tasks that are outside of the usual course of the company’s business activities.
The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed (e.g. a driver who is an independent contractor for a rideshare service, but also offers the same service through his or her own business).
At this point, your business has three primary options.
You can convert a certain amount of your independent contractors to permanent employees, fully adhering to the law. While this means offering them competitive benefits and pay, it also means avoiding the up-to $25,000 state-levied fines for every violation.
You can completely outsource, to include a staffing company or organization, whichever part of your operations rely on independent contractors to another company that will assume all classification and management of the workers. This relinquishes some control but allows you to focus on other business priorities.
You can partner with a staffing company, like Adecco, who becomes the employer of record—handling classification, benefits, pay, and other HR-related duties. Here, you maintain some day-to-day control of your workforce but rely on your staffing partner—who should have trusted, internal HR and legal counsel—for AB5 compliance.
Regardless of which option you choose, remember that AB5 is in a state of flux. Yes, the law passed, but there are many legal battles attached to it.
Over the last few months, Adecco has built several customized solutions to help our clients comply with AB5, while maintaining the workforce flexibility they need. If you would like to do the same—or at least explore some options—please join us at the event live, and if you cannot attend, please contact us atAB5@AdeccoGroup.com.