What is AB5 (and similar state laws)?

AB5, also commonly referred to as the California “gig worker law,” went into effect January 1, 2020. Additionally, similar legislation is being passed in other states. It’s designed to separate independent contractors from employees, eliminating gray area around worker classification. As a result of the law, it’s likely that many independent contractors will be reclassified as employees and benefit from certain protections, including minimum wages and various benefits.

For a more detailed explanation, check out our article, “Breaking Down California Assembly Bill 5 and its Effect on Your Business in 2020.”

Or, watch our webinar presentation, “AB5: What Does it Mean for Your Business?”

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How should you respond to these laws?

The short answer is this: comply. By remaining in compliance, your business avoids any potential state-levied fees—which can be up to $25,000 for every violation in California—and you can rest easy, focusing on daily operations. For now, AB5 and other similar state laws are in a state of flux as some companies choose the wait-and-see approach and/or look to repeal legislation, but that’s a far riskier approach. Ultimately, we always recommend adhering to labor laws and avoiding worker misclassification. One way to accomplish this is to partner with a staffing company who acts as the employer of record for your workforce.

What are Adecco’s solutions?

We offer you two proven solutions in which we become the employer of record for your employees, assuming risks related to worker classification.

Fully Digital Employee Experience

A technology-driven solution in which workers are engaged—including being vetted, onboarded, and paid—100% online. (It can take less than three minutes to process employees from start to finish.)

High-Touch Employee Experience

A part digital, part white-glove solution in which we efficiently communicate with workers across multiple channels and touchpoints.

We have also built many custom solutions for our clients. To learn more about the solutions we could create for your organization, please reach out.

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Why is it best to work with Adecco?

With the resources of a global company and the market knowledge of a local company, you receive a unique set of benefits:

  1. 100% worker classification between employees and gig workers/independent contractors thanks to our expert HR, legal, and operations teams.
  2. Endless scalability as your workforce fluctuates because of our flexibility with internal resources devoted to your program or business.
  3. Rapid processing time with minimal disruption by leveraging our frequently updated, user-friendly digital platform.
  4. Seamless operations when transitioning workers due to our ability to adapt to your organization’s unique processes.

Connect with our AB5 experts.