CALCHAMBER STATEMENT ON AB 5

The California Chamber of Commerce today released the following statement on AB 5 (Gonzalez; D-San Diego):

“CalChamber is pleased with the number of professions that AB 5 recognizes should not fall under the independent contractor test set forth in the Dynamex decision. AB 5 provides clarity and certainty for those industries. The fact that the Legislature recognized in AB 5 — and in related legislation — that so many professions and industries include workers who are not appropriately classified as employees is strong evidence that the Dynamex decision should not apply to everyone and there are many industries that still need to be added.

“Simply put, much work remains to be done on the Dynamex issue. As such, the business community will be aggressively pursuing further exemptions next year. The test set forth in the Dynamex ruling does not correctly contemplate the realities of the modern economy nor fairly consider the sweeping impracticalities it would bring to the California economy.”

Please note, commercial real estate brokers/brokerage firms are “exempted” from this law, based partially on the argument that the profession is highly regulated. This is about as good of an outcome as we had hoped for – this was a complicated bill based on a court case that threatened to upend our entire way of doing business.

We thank the CalChamber and the CA Association of Realtors for being such excellent partners in this effort.

© 2007-2012 Building Owners and Managers Association of California (BOMA Cal)