With compromises, gig worker bill passes key legislative committee

A bill to codify the status of so-called gig workers passed a key Senate committee on Wednesday.

AB 5 has been one of the most controversial bills of the legislative session, as illustrated by large dueling rallies outside the Capitol by supporters and opponents. Dozens of business and trade groups are still formally fighting the measure.

But key elements of the opposition broke down recently after the bill's author agreed to take amendments supported by the California Chamber of Commerce. Assemblywoman Lorena Gonzalez, D-San Diego, said she would allow several professions to be added to be added to a list of those exempted from the bill. These range from business-to-business services to podiatrists, construction contractors and graphic designers.

The bill is a response to Dynamex Operations West Inc. v. Superior Court, 2018 DJDAR 3856. The state Supreme Court threw out the Borello test that had been in use for nearly 30 years in favor of a more worker friendly "ABC" standard to determine whether a particular worker should be classified as a contractor or an employee.

"Under the previous Borello test, misclassification remained a widespread tactic used to exploit vulnerable workers in industries like construction, trucking and delivery for decades," Gonzalez told the committee.

Jennifer Barrera, executive vice president of the CalChamber, said her organization was "supportive" of the exemptions Gonzalez has added to the bill for industries that had "traditionally" worked with independent contractors and did not pose a "high risk" of worker abuse. She said the amended bill was the result of more than a year of negotiation following the Dynamex decision.

The bill now heads to the full Senate, and if it passes back to the Assembly to approve recent amendments.

-- Malcolm Maclachlan