New Labor Law Will Impact Independent Contractors

SACRAMENTO – Senate Republican Leader Shannon Grove (R-Bakersfield) issued the following statement after the governor signed Assembly Bill 5 into law. AB 5 will threaten the livelihoods of many independent contractors in California because it only covers certain industries that were fortunate enough to get a carve-out from Legislative Democrats.

Senate Republicans offered 12 sets of amendments to AB 5 during the last week of session. Exemptions that Senate Republicans proposed to AB 5 included: foresters, health care professionals, physical therapists, interpreters, translators, single truck owner-operators, newspaper carriers and distributors, non-profits, franchisors, franchisees, and designers. Senate Democrats blocked Republicans' efforts to protect the employment status of independent contractors in those industries.

Senate Republican Leader Shannon Grove issued the following statement after AB 5 was signed into law:

"Many Californians will now suffer from a law that plays favorites. Legislative Democrats rejected Senate Republicans’ amendments to AB 5 which would have leveled the playing field for all independent contractors and helped industries that were excluded. Democrats, labor unions, and Governor Newsom, picked winners and losers with AB 5.

“Instead of helping all of these Californians, Democrats supported AB 5, and issued carve outs to industries they considered their friends. A one-size-fits-all approach should not and cannot apply to those who depend on being an independent contractor,” said Senate Republican Leader Shannon Grove.