AB-5 Freelancer Law: Five Takeaways

On Wednesday, June 17th the Children’s Media Association hosted an online information session and Q&A with Steven Friedlander and Galen Sallomi from the SV Employment Law Firm. They discussed the AB-5 Law and how it effects employers and employees in the freelance children’s media industry. The pair shared useful and detailed information regarding the law and its stipulations.

The top five takeaways from their presentation include:

  • The main purpose of the AB-5 Law is the protection of abuse for workers. The state of California has put this law in place to give workers more employee benefits such as overtime, unemployment, stock options, expense reimbursement, minimum wage/proper payment, protection from discrimination laws, etc.
  • Employees receive more government mandated benefits/protections than independent contractors BUT independent contractors can cost employers less, earn more money, and have more freedom/flexibilities.
  • The AB5 Law requires the use of the ABC test to determine which workers are considered employees. It is the employers burden to make sure each of factor of the ABC test are met, and if they are not then the worker is considered an employer. (Some exceptions exist)
  • Even if both parties want the worker to be considered a contactor, there are penalties for employer if they violate any laws regarding employee/contractor status.
  • The legal analysis on whether a worker is considered an employee or contractor is very structured. An employer must follow 3 steps:
    • Step one- are you an exception?
    • Step 2 – Perform the “ABC” test
    • Step 3—Perform the “Barello” test

If you would like to receive a copy of the PowerPoint Presentation to learn more about the “ABC” and “Barello” tests, as well as other valuable information regarding the AB-5 Law, please reach out to julie@childrensmediaassociation.org.

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