California Assembly Bill 5 (AB5), popularly known as the “gig worker bill,” is legislation that went into effect on Jan. 1, 2020, and required companies that hire independent contractors to reclassify them as employees. The law made it more difficult for employers to claim that workers are independent contractors. Under AB 5, a worker is assumed to be an employee and not an independent contractor unless they meet the below three-pronged test: The person is free from the control and direction of the hiring entity in connection with the performance of the work, The person performs work that is outside the usual course of the hiring entity’s business, and The person is customarily engaged in an independently established trade, occupation, or business. This test holds companies to a higher standard in proving workers are independent contractors than was previously used in California. AB5 made this test the new gold-standard requirement for all companies in the state. Under AB5, companies must use this three-pronged test to prove workers are independent contractors, not employees. This matters because if drivers, if deemed employees, may be eligible for benefits such as overtime pay, unemployment compensation, etc.