United States : California simplifies procedure for reclassifying independent workers as employees

The State of California is close to finalising its adoption of Assembly Bill 5 (AB5), which will make the so-called ABC or Dynamex test, comprising three criteria, the standard used when it comes to approving or rejecting an independent worker’s request to be classified as a salaried employee. The California State Senate, where there is majority of Democrats, who’ve already been won over by the bill, still needs to validate the bill adopted on 11 September by the State Assembly.
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The bill integrates into legislation a decision taken by the state’s Supreme Court, which formulated the method for classifying an individual either as an independent worker or an employee. The approach consists of three criteria, which make up the so-called ABC or Dynamex test, the latter referring to the name of the company that was the subject of the Supreme Court’s decision (see article n°10666).

The three conditions for a worker to be classified as independent are as follows: a) the contrac

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