California Ag on AB5
The California Farm Bureau predicted such legal challenges before the new law goes into effect on January first.
Jaime Johansson CEO of the Farm Bureau told California Ag Today the legislation chooses winners and losers.
Johansson: “There’s going to be a lot of unfortunate ramifications. And in agriculture we use a lot of independent contractors. A lot of us in agriculture are independent contractors ourselves so we can set our own schedule and come back and farm. You saw the carve outs for the health industry you saw the carve outs for the real estate people.”
Under AB5, companies must follow an ABC test to show a worker is not an employee. They must prove a worker is free from the control and direction of the hirer in connection with the performance of the work. The worker must perform work that is outside the usual course of the hiring entity’s business and the worker must be engaged in an independently established occupation or business of the same nature as the work performed.