Changes Coming For Independent Contractors In California

Big news coming out of California where the legislature just passed a bill that would make it significantly more difficult for businesses to classify workers as independent contractors, rather than employees. The full text of the bill, which is known as AB5, can be found here.

Businesses in Washington should be aware of this development, even though it may not impact them at this point. California is regularly at the forefront of setting policies that are later adopted by other states. Given that California and Washington are both home to major hubs within the tech industry, which has been the primary disrupter of norms surrounding classification of workers as independent contractors, it is not difficult to imagine Washington following California’s lead.

In fact, Washington recently enacted a bill that will substantially restrict the use of non-compete agreements, which California already does. Limiting the ability of employers to classify workers as independent contractors would further align Washington’s worker protection policies with those of California.