California’s AB5 May Be Unconstitutional

This 2020 law created an ABC test to determine whether a worker is an employee or independent contractor. The law exempted many jobs and businesses, but not rideshares and other app-based transportation and delivery services. Uber and Postmates challenged the law as unconstitutional and a federal court said the case can proceed. Note: It’s a rule of thumb that it costs a company about 30% more to have employees versus independent contractors. #IdeaoftheDay

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