California’s new law, AB 5, attempting to clarify the Dynamex Court ruling has been drawing lots of complaints for having a variety of unintended consequences.  Our industry worked hard to clarify that Real Estate Brokers were not included in the law, however another major issue we had was that the bill was not clear in how it impacted business-to-business contracts between two incorporated entities and are seeking to clarify that issue further in clean up legislation this year.

However, there are many unincorporated contractors to which the bill applies, and they protested at the Capitol this week to highlight the impacts of the bill.  The bill is having a particularly outsized impact on artists and musicians that are true independent operators.

Beyond that some of the major players in the “gig economy” are fighting back hard.  A coalition of rideshare services as well as other app-based companies have vowed to spend upwards of $100 million to put a proposition on the ballot to overturn the law.  This week they reported that have reached 25% of the signatures needed and are investing heavily in obtaining the needed signatures.

This issue shows the intersection of old-fashioned labor and new-fangled technology hitting square on.

On behalf of the commercial, retail, and industrial real estate industry we are in the middle of this battle and trying to protect your interests.  However, as we have recently learned, even when the law is deemed “clarified” in statute there is a lot of confusion about how the law is applied in the Real World.

If there are questions about your own operations, we highly recommend consulting a labor law specialist that can provide technical advice and help keep you out of the crosshairs of a lawsuit.

In the meantime, for some basic information on the topic, click here.

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