May 1, 2019
By: Thomas M. O’Connell
Assembly Bill AB5 has been amended again, this time to include appropriations specific language.
On May 1, 2019, Assembly Bill AB5 was amended to include certain appropriations related changes. More specifically, the bill now includes specific references to unemployment insurance provisions. As an example:
Existing law, for purposes of unemployment insurance provisions, requires employers to make contributions with respect to unemployment insurance and disability insurance from the wages paid to their employees. Existing law defines “employee” for those purposes to include, among other individuals, any officer of a corporation, and any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee.
For those that are looking for more carve outs or signs that this bill is not going to pass, this is not a good sign. Consideration of the bill has been limited to technicalities and little else only a day after receiving the bill from the Labor and Employment Committee. To the extent this makes it out of the Appropriations–which now appears highly likely–the Assembly Floor will be where more significant amendments and fights should occur next.
This article was originally published on the California Franchise Network.