California Destroys $1 Trillion Gig Economy With New Law

California isn’t shy when it comes to making the daily headlines. Often heralded as a progressive utopia, the Golden State recently signed into law Assembly Bill 5 (AB5), which will change the landscape of the gig worker economy. Stemming from the groundbreaking court decision established in Dynamex West Inc. v. Superior Court of Los Angeles, the California Supreme Court found Dynamex’s workers were misclassified as independent contractors rather than employees.
In a unique twist, the court shifted the burden to the nationwide courier and delivery service to prove their drivers were not employees by using the “ABC test.” Under this new test, an individual is presumed to be an employee, unless the employer can prove all of the following…