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AB 5 Independent Contractor Provisions Amended to Benefit Public Agencies

By Dillon Gibbons posted 08-21-2020 03:46 PM

CSDA led efforts to amend the provisions of AB 5 are paying off. Yesterday, coming out of the Senate Appropriations Committee, AB 2257 (Gonzalez), the bill to make several fixes to last year’s AB 5 related to independent contractors was amended to provide exemptions from the “ABC” test for public agencies under the business to business contract section of the bill. This amendment will ease contracting abilities for all public agencies that had been able to meet the “Borello” test to determine if an individual should be classified as an independent contractor but could not meet the new “ABC” test from AB 5. For special districts this might include contracts for Information Technology (IT), building design, and more. With only a limited number of days left in the legislative session (August 31), CSDA is continuing our efforts on to seek further amendments to assist recreation and park districts’ ability to contract with class instructors.