AB5 and How it can affect you!
Updated: Jul 1
Brea- California Assembly Bill 5 (AB5) sometime referred to as the “gig worker bill” is a new part of California’s on going battle against illegal sub-contracting within the state. It came into effect on January 1st 2020 and provides us with more information on how to determine whether a company is illegally subcontracting.
The state of California is mandating that corporations extend the employee classification status to gig workers. There are some exemptions to this law, but any person that fails this three-pronged test must be considered an employee.
The Three Prong Test is as follows:
1. The worker is free to perform service without the control or direction of the company.
2. The worker is performing work tasks that are outside the usual course of the company’s business activities.
3. The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
If a worker fails any of those three tests, they must be hired as an employee. This law has a major effect on the janitorial services industry. Many janitorial service providers tend to try and subcontract out their work, so that they can avoid the expensive Worker’s Comp fees that come with operating in any state.
This new law also affects the clients of these janitorial companies since even if they are able to some how bypass parts 2 and 3 of the test; they no longer have control over the level of service that they are providing to the client. Thiscan damage the reputation of the client if their property is not being cleaned properly.
For more information about the law click here.
About Contract Services Group, Inc.
Contract Services Group, Inc. provides commercial janitorial, window cleaning, and window washing systems. CSG’s online presence is located at http://www.csgcares.com.
CSG provides janitorial and window cleaning services throughout California, Nevada, and Arizona.