AB 5, California’s landmark legislation effectively banning independent contractors, may very well go national if President Biden’s pick for US Secretary of Labor, Julie Su, is approved by Congress. Ms. Su was the architect of AB5 and fully supports stripping thousands of small businesses of their right to continue to operate as a small business but instead forcing them to be an employee.
As it relates to AB 5 specifically, the law continues to face legal challenges:
Proposition 22 went to California’s voters in November of 2020, and the voters overwhelmingly approved the ballot measure allowing gig drivers (Uber, Lyft, etc.) to maintain their independence. Shortly thereafter, a lower court judge struck down Prop 22 claiming the proposition violated the state’s constitution. That ruling was appealed, and the District Court of Appeals recently overturned the lower court’s decision ensuring gig workers’ independence.
The California Trucking Association (CTA) is also battling AB5 and is seeking another injunction against its implementation in the trucking industry. The CTA contends AB5 is an overreach and violates federal law. No argument here.