Home>Articles>AB 5 ‘Grace Period’ Introduced in New Bill

Assemblyman Kevin Kiley led the Repeal AB5 rally at the State Capitol. (Photo: Katy Grimes for California Globe)

AB 5 ‘Grace Period’ Introduced in New Bill

‘Every day we wait to take action, more Californians are losing their livelihoods as the result of AB 5’

By Katy Grimes, March 5, 2020 1:37 pm

Assemblyman Kevin Kiley (R-Rocklin) just announced a new bill, AB 2075, to provide a Grace Period for AB 5 compliance through the rest of 2020.

“AB 5, in its current form, is causing chaos,” Kiley explained to California Globe. “Even lawyers can’t make heads or tails of it. And everyone, including the author, says major changes are coming. Why on earth would we not allow a brief Grace Period until these changes take effect next year?”

Since January 1, Assembly Bill 5 by former labor leader Assemblywoman Lorena Gonzalez (D-San Diego), has already significantly limited Californians’ ability to work as independent contractors and freelancers. It was revealed during Senate debate in September that the AFL-CIO wrote AB 5.

“This modest relief provides breathing room while changes to AB 5 are being worked out,” Kiley said.

More than 30 bills proposing exemptions for certain industries and other changes to AB 5 have been introduced by legislators of both parties this year. That includes a bill from the author of AB 5, Assemblywoman Lorena Gonzalez, proposing major changes.

Kiley says under AB 2075, hiring entities would still be subject to liability for employee misclassification in 2020, but would not face liability under the new ABC Test—adopted in AB 5 and the Dynamex decision—until 2021. This minimal relief has been requested by countless businesses and independent contractors who are currently navigating how to comply with AB 5.

The California Legislative Analyst’s Office estimates that AB 5 has already affected more than 1 million independent contractor and freelance working Californians, and the growing list of 300+ industries impacted by the new law.

For a sampling of these effects, Assemblyman Kiley’s office compiled a book of AB Stories in January. On January 28, California Globe attended a Rally to Repeal AB 5 at the State Capitol, which drew between 300 and 350 people representing many different industries.

Last week, the California Assembly rejected a motion by Assemblyman Kevin Kiley (R-Rocklin) to suspend AB 5 while corrective legislation is under consideration. Kiley’s Assembly Bill 1928 is an urgency measure to repeal AB 5 and would return the legal standard for independent contracting to what it was for decades before AB 5 and the Dynamex decision. Kiley proposed the Legislature suspend those recent changes pending further legislative consideration. Kiley will continue to move forward AB 1928, and he said he still believes repealing AB 5 is the best solution.

“Every day we wait to take action, more Californians are losing their livelihoods as the result of AB 5,” Kiley said.

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14 thoughts on “AB 5 ‘Grace Period’ Introduced in New Bill

  1. Those in the legislature who are blocking a suspension or a needed respite in AB5 are apparently unable to be reasonable. This is nuts, when so many people have had their ability to work STOLEN from them, as we have seen in great detail, because of the work of Asm Kevin Kiley and the coverage of Katy Grimes and others at The Globe. Glad that Kevin Kiley hasn’t given this one up, and I’m definitely pulling for everyone who has been affected by AB5, hoping and praying for a good outcome. Will be watching…. Thank you again Katy Grimes, a million times, for keeping us all informed on this important matter.

  2. AB 5 is a job killer. If you want us to put together drug treatment communities for the 150,000 plus homeless and addicted…they need to work part time while in treatment and few want to take a chance on them as full time employees. Let them be independent contractors. Give the marginalized people a chance to recover, AB5 is anti-recovery, AB5 is anti-disabled and AB5 is anti-women. A lot of women take care of children, work and then take care of elders and need flexibility. AB5 is misogynist. AB5 is anti-caretaker. AB5 only is good for people who are so wealthy that someone else is taking care of their elderly and children. I don’t care what privileged people say “they are not real jobs”, they are real to the people who need the flexibility or cannot work full time. AB5 is anti-American, AB5 is discriminatory and AB4 is anti-free press. AB5 is Anti-creativity. What business of yours is it if we want to work assisting several different companies part time in different industries? Repeal AB5 and find another solution to your Uber problem.

  3. AB 5 is a job killer. If you want us to put together drug treatment communities for the 150,000 plus homeless and addicted…they need to work part time while in treatment and few want to take a chance on them as full time employees. Let them be independent contractors. Give the marginalized people a chance to recover, AB5 is anti-recovery, AB5 is anti-disabled and AB5 is anti-women. A lot of women take care of children, work and then take care of elders and need flexibility. AB5 is misogynist. AB5 is anti-caretaker. AB5 only is good for people who are so wealthy that someone else is taking care of their elderly and children. I don’t care what privileged people say “they are not real jobs”, they are real to the people who need the flexibility or cannot work full time. AB5 is anti-American, AB5 is discriminatory and AB4 is anti-free press. AB5 is Anti-creativity. What business of yours is it if we want to work assisting several different companies part time in different industries? Repeal AB5 and find another solution to your Uber problem.

  4. Is Kiley doing a gut-and-amend? AB2075 is still listed on the California Legislation website as pertaining to Veterans Homes.

    1. Might be an old assembly bill? I’ve noticed different bills with the same number when I’ve searched online. Confusing.

  5. Adjunct Instructors in Community Colleges are independent subject to 1099’s. They should be employees with proper benefits. Sickening how liberals rip off hard working people.

  6. What Is AB5

    AB5 Is a Law Forcing the Business of California to FOLLOW THE LAWS ALREADY IN PLACE !!!
    1099 = Busniess
    W-2 = Employee
    The ISSUE is people from Large corps to small mom and pops ARE ABUSING THESE RULES that have been out in place for years, OTHER THAN THE B PRONG of the test which is a sweeping law that wipes out legal businesses, AB5 IS NECESSARY TO KEEP EQUALITY OF THE LEGAL COMPANIES , protected from the ILLEGAL Companies committing TAX EVASION ,
    There should be some common ground on the B prong, But to KEEP BUSINESS FAIR, there must be laws in place so EMPLOYERS DO NOT ABUSE THE 1099, it was not ever intended to be used the way certain employers are using it,
    I have been in business almost 40 years, I am in the transportation industry currently. And i see the need to enforce the Mis-Classifications of Employees, THIS IS COSTING LEGAL RUNNING BUSINESSES Tremendously While other businesses are EVADING TAXES ???

  7. AB5 has halted the ability of staffing agencies to provide healthcare contractors (locums) NPs, PAs, and others that have performed services as 1099 for years to mobilize quickly to fill gaps in healthcare and communities that are underserved. Now in the midst of the coronavirus and a flu outbreak. Terrible timing!

    1. Ab5 is destroying lives of Californians. Gonzalez should be ashamed of her actions. Worries more about illegals then Americans. What a joke.

  8. Ab5 is destroying lives of Californians. Gonzalez should be ashamed of her actions. Worries more about illegals then Americans. What a joke.

  9. I manage a healthcare facility and AB5 has totally upended our staff during this Coronavirus Pandemic. I thought it was all hands on deck to serve the community from anywhere we can get healthcare providers. Its a joke talking to anyone from DIR or EDD. They all have nothing to say except that they dont give legal advice. Shame on whoever can change this and is just ignoring it in this Pandemic.

  10. AB5 is effectively killing our small non-profit community and children’s theatre of 38 years in Chino, and many other small theatres have had to close their doors. Currently we have no one payroll and are being told we cannot pay anyone any stipends for their services. In the past, we paid our instructors, directors, lighting technicians, sound technicians and stage managers and others stipends but we certainly cannot hire them all and put them on the payroll. We would be bankrupt in three months. So now our programs for youth are decimated. The few classes we have held, we have asked the parents to send donations to our instructors. Since we are in a lower income area, very few are able to. We’re heartbroken that our little theatre cannot continue. This law has so much collateral damage.

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