VICA remains concerned with the legal definition of independent contractors in California under AB 5. In 2019, the Legislature sensibly realized that these new rules don't work for specific industries and provided certain exemptions. However, many other small businesses and non-profits are left out in the cold, uncertain if individuals traditionally considered to be independent contractors must now be considered employees.
While AB 5 does allow proper contracting between companies through a business-to-business exemption, VICA has heard from a number of small businesses and non-profits who have chosen to avoid contracting individuals for their services out of fear of being non-compliant with the requirements under AB 5.
Businesses want clarity and equity on this issue. We urge the Legislature to continue negotiating to allow independent contractors to continue to thrive in California.