Labor & Employment Law Blog

California Assembly Bill 5 (“AB 5”), which codified significant changes to the test for independent contractor status, has caused substantial upheaval for California businesses.  As the statute will likely result in significant litigation over the next several years, California companies are scrambling to guard against its impact where possible.  One potential avenue to do so is the statute’s “business-to-business” exemption.  This alert discusses the requirements businesses must understand if they are to satisfy the criteria of the exemption.