AB-5 Update

Shane Clary, Ph.D.
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AB 5 is a bill the Governor signed into law in September 2019 addressing employment status when a hiring entity claims that the person it hired is an independent contractor. AB 5 requires the application of the “ABC test” to determine if workers in California are employees or independent contractors for purposes of the Labor Code, the Unemployment Insurance Code, and the Industrial Welfare Commission (IWC) wage orders. The California Supreme Court first adopted the ABC test in Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal.5th 903. Among other things, AB 5 added a new section to the Labor Code addressing these issues (section 2750.3).

The CA Labor and Workforce Development Agency has release a web portal and FAQs to help businesses with compliance on employee/independent contractor classification and misclassification given the passage of AB 5.Portal — https://www.labor.ca.gov/employmentstatus/

FAQ — https://www.labor.ca.gov/employmentstatus/faq/

Review the following PowerPoint presented by Shane Clary, Bay Alarm, Chair of CAA Legisltive Committee, at the CAA Winter Convention in San Francisco: How to Operate Within the Guidelines of AB-5

We expect several new bills to be introduced in the 2020 legislative session to further clarify what industries and jobs are not subject to the ABC Test.

Political Action Committee

The Political Action Committee (PAC) is an important part of the CAA governmental relations program. In past years, CAA has raised more than $30,000 in its PAC to contribute to business-minded legislators. We want to establish this funding level as a goal for 2020 and encourage CAA members to contribute what they can to reach this goal.

As a reminder, PACs allow citizens with a common interest to join together to participate in the political process. Members of an industry association or employees of a company have an interest in supporting candidates whose philosophy is conducive to creating an environment in which their business can succeed. By donating to the company or association’s PAC fund, employees or members help ensure that legislators will be elected who are interested in and responsive to the concerns of the company or industry.

CAA PAC Fund Contributions

The California Alarm Association has a very strong government relations program that works on the local, state and national level. In addition to the hundreds of hours of volunteer service from our members, we have a CAA PAC Fund which supports our interests in Sacramento.

Payable to:
Mail to:
C/o Richard Eichman, CPA
1127 11th Street, #300
Sacramento, CA 95814
Funds can be corporate or personal, although they are not tax deductible. 

IMPORTANT: Include your name, address, employer and occupation with each contribution.

To make a donation with your VISA/MasterCard/AMEX call the CAA office at 800- 437-7658 ext. 3 or download the CAA PAC Pledge form below.

 Download PAC Pledge Form

About the CAA

The California Alarm Association develops and manages programs to benefit members and to promote the growth of professionalism in the electronic security industry throughout the state of California. We exist to serve our members and associates by being the industry advocate and liaison with public safety agencies, government bureaus, and licensing, standards and regulation bodies.