Gavin Newsom signs bill allowing labor law exemptions for musicians, coaches and more

More California industries can hire independent contractors instead of employees with benefits under a bill Gov. Gavin Newsom signed on Friday to allow more flexibility in a 2019 state labor law.

The new law, which takes effect immediately, allows more youth sports coaches, artists, interpreters, freelance writers, appraisers and insurance field representatives and a range of people in the music industry to work as independent contractors.

The California Legislature on Monday night sent the bill to Newsom.

That bill had the support of Assemblywoman Lorena Gonzalez, D-San Diego, who wrote the 2019 law known as Assembly Bill 5 that requires businesses to give employment benefits to more workers.

AB 5 codified a 2018 California Supreme Court ruling that also restricted employers’ ability to deny benefits to workers.

Sen. Hannah-Beth Jackson, D-Santa Barbara, said on Monday the bill responds to concerns and “makes significant headway toward addressing the fundamental question of who is an employee and who is an independent contractor.”

AB 5 is being challenged in court by an association of truck drivers, as well as by gig economy giants Uber and Postmates, which are also backing a November ballot initiative, Proposition 22, that would exempt app-based drivers from the law.

This story was originally published September 4, 2020 at 3:30 PM.