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California’s New Employment Law (AB 5)

What it Means for Your Church

New legislation can be challenging to interpret and California’s new employment regulations regarding the legal status of workers who provide services to business is no exception.  Additionally, nonprofits and religious organizations have come to understand that sometimes their organizations have been exempted from having to comply.  In this case however, the new California statute appears to apply to all nonprofits operating in the State, regardless of type.

While we at CMA don’t consider ourselves to be experts in this area of compliance here is some guidance on California’s new AB5 law that can help you begin to better understand and apply the regulations to  your organization.

Background

AB 5 codifies the Dynamex Operations West v. Superior Court of Los Angeles (Dynamex) case, decided by the California Supreme Court in April of 2018. In that case, the court abandoned the 20-year-old test for independent contractors set forth in Borello & Sons v. Department of Industrial Relations (Borello).

The Borello test considered many factors related to the amount of control an employer exerted over a purported independent contractor, none of which was determinative on its own.

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Posted in: Employment Law, News

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