Independent Contractor Law Articles

California AB5 Law for Independent Contractors

If you sell services to California clients, the real issue is often whether the client's legal and procurement teams can evaluate and document the classification decision before they send your contract for signature. Under AB5, that review happens inside a framework that has been in place since January 1, 2020. Misclassification exposure can include [civil penalties of $5,000 to $25,000 per violation](https://www.dir.ca.gov/Fraud_Prevention/Misclassification.htm).