On Wednesday of this week, the California legislature gave final approval to AB-5, legislation that makes it much more difficult for businesses to classify workers as independent contractors. The bill essentially codifies the Dynamex Operations West decision of the California Supreme Court, which adopted the Massachusetts model of determining employee status with an “ABC test”. That test provides that a worker must be classified as an employee – as opposed to an independent contractor – unless the hiring entity can prove that the worker is (A) free from control; (B) providing services unrelated to the hiring entity’s business; and (C) holding him or herself out as an independent business. Billed as mostly impacting the “gig economy”, AB5 will also have a major impact on third-party delivery companies and is viewed as having the potential to significantly impact business operations in a host of other industries as well. Once it is signed by California Governor Gavin Newsom, who supported the legislation, it will take effect on January 1, 2020.