California’s Assembly Bill 5 (AB5) redefines who is an independent contractor and who is an employee. AB5 adopts the ABC Test to classify workers:
Any worker who does not meet all of these criteria must be a W-2 employee.
AB5 applies to businesses of all sizes in California and any business that employs California-based workers. View it as a blueprint for future legislation: Already, New York and New Jersey are expected to enact similar laws.
The bad news: Companies that don’t comply with AB5 risk fines, penalties, lawsuits, liability for back pay and benefits, and negative public perceptions.
The very good news: If some of your contractors are misclassified, don’t panic. There are flexible solutions to achieve AB5 compliance.
Aquent CEO, John Chuang, discusses workforce benefits equality with Yahoo! Finance.
Let Vitamin T hire your pre-identified talent as our employees and provide exceptional benefits and HR support.
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Extend your in-house team with some of the best creative and marketing talent.
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AB5 addresses workforce inequality, particularly when it comes to benefits. Provide equal benefits for contingent talent with our Square Deal solution.
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With our expertise in staffing and workforce solutions, we can help address your AB5 questions and mitigate risks of misclassification. Together we can find the AB5 solutions that are right for your company.