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Budget Proposes $20M to Implement AB 5, Including $17.5M for DIR

By Greg Jones (Senior Editor)

Monday, January 13, 2020 | 1534 | 0 | 91 min read

California Gov. Gavin Newsom on Friday proposed allocating more than $20 million to implement the new employee status test required by Assembly Bill 5, an amount nearly four times what legislative consultants projected in first-year costs. AB 5, by Assemblywoman Lorena Gonzalez, D-San Diego, codifies the ABC test from the state Supreme Court’s 2018 Dynamex decision, which presumes workers are employees unless the employer satisfies three criteria to rebut the presumption and establish that the workers are independent contractors. The proposed 2020-2021 budget would allocate $3.4 millio...

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