AB 5 Suffers Early Legal Setbacks

| posted in Blog, Newsletter

California’s controversial independent contractor law suffered its first two legal setbacks in January after trucking firms and independent truckers were able beat back at the new law in court arguing that the ABC Test should not apply to them. Recent AB 5 Rulings On Jan. 8, a Los Angeles County Superior Court judge ruled that AB 5 does not apply to independent truckers because they are covered by federal law. And on Jan. 13, a federal judge extended a restraining order for the law to cover truckers as of Jan. 1 this year in a case brought by the California…
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More Businesses Get Bills for ‘Misclassified’ Workers Under AB 5

| posted in Blog, Newsletter

One outgrowth of new California law AB 5 that applies more stringent criteria for what constitutes an independent contractor is that many employers are likely to see more audits and calls for additional premium from their workers’ comp insurers. In fact, it’s already happening in some industries, according to the insurance industry trade press. More and more employers are being hit with sizeable surprise bills for additional premium by their insurers for allegedly misclassifying employees as independent contractors, according to one article in the Workers’ Comp Executive trade publication. And this problem is only like to get worse in 2020…
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Top 10 Laws and Regulations for 2020

| posted in Blog, Newsletter

The new decade is starting off with a massive swell of important new laws and regulations that will affect California businesses. There are so many new laws and regulations that companies have to be on their toes especially at the start of 2020 to get their bearings. If you are operating a business in California, here’s what you need to know coming into the new year. 1. AB 5 Probably the most earth-shattering new law to hit the books in California is the highly controversial AB 5, which creates a new and more stringent test for determining who is an…
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Changes to Independent Contractor Requirements Take Hold In California

| posted in Blog

This is the second in a three-part series brought to you by CoreMark Insurance Services, Inc to address a few of the major changes facing California employers in 2020. If you missed our first installment, you can read it here. The so-called “gig-economy” has made ever-lasting waves in the California employment landscape, and the full effects of these changes are still yet to be seen.  In September of this year, Governor Gavin Newsom signed Assembly Bill 5, also known as AB-5, that codifies the “ABC Test” first seen in the Dynamex Supreme Court case. The new law puts a much…
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Newsom Signs Sweeping Independent Contractor Bill AB 5

| posted in Blog, Newsletter

California Gov. Gavin Newsom has signed legislation into law that will codify a court ruling from last year that set new ground rules for what constitutes an independent contractor, and which expands on that ruling. There’s been a lot written in the media about the legislation, AB 5, and unfortunately much of it misses the point. Some news reports have said it will spell the end of independent contractors in the state and that anyone a company hires to do a temporary job on contract must be treated as an employee, along with all of the obligations that go with…
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