A New Landscape for Businesses with California Operations, Thanks to A.B. 5

By and on September 26, 2019
Posted In Employment

This month, Assembly Bill 5 (A.B. 5) was signed into California law. A.B. 5 codifies the “ABC Test”—used to determine if a worker is an independent contractor—which is broader, harsher and more inclusive than the common law test with which most businesses are familiar.

A.B. 5 appears to be the death knell of convenience for retaining contractors in the Golden State, as well as the advent of a new wave of wage and hour litigation.

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Marjorie C. Soto Garcia
Marjorie C. Soto Garcia’s labor and employment practice covers single plaintiff and class action litigation, employment counseling, traditional labor (including union activity and collective bargaining), and M&A and complex transactions. She regularly defends employers in state and federal lawsuits alleging discrimination, harassment, retaliation, wrongful termination, wage and hour violations, violations of the Fair Credit Reporting Act (FCRA), Private Attorney General Act (PAGA) actions and unfair labor practice charges under the National Labor Relations Act (NLRA). Marjorie is additionally experienced in managing complex transactions (including M&A), regularly providing clients with strategic advice on potential risks and practical, business-oriented solutions. She is also experienced in dealing with trade secret, confidentiality, non-compete and non-solicit matters in employment and separation contracts. Read Marjorie C. Soto Garcia's full bio.


Yesenia M. Gallegos
Yesenia M. Gallegos focuses her labor and employment practice on a wide range of matters, including restrictive covenants, wage and hour law, discrimination and harassment claims, executive employment agreements, leaves of absence, employee terminations and reductions in force. Yesenia represents employers in employment litigation—including class actions—pending in both state and federal court. She also represents employers in actions against former employees in trade-secret and embezzlement actions that require immediate restraining orders, injunctions and/or liens. Read Yesenia Gallegos' full bio.

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