What You Need To Know: Some staffing companies are leaving California rather than offer workers what they deserve as a reaction to the new AB5 regulations. If you’re affected, check out Bluecrew - you get the flexibility you love plus the benefits of being a W-2 employee.
The state of work in California is changing. Why? Because of AB5. This new California law aims to protect hourly workers by making employers offer the benefits and protections that workers deserve.
At Bluecrew, we’re passionate about helping companies stay fully staffed and giving hourly workers the full protections of W-2 employees. While we focus on offering flexible work opportunities, we also believe the benefits of being a W-2 worker are fundamental.
If you’re curious about what’s going on with California hourly jobs - or how it may impact you - read on.
This whole thing starts with “worker classification.” That revolves around whether you’re a 1099 contractor, an independent individual who provides contract work for a company, or a W-2 employee, who receives a regular wage with benefits and protections.
Here are the basics:
Coming into effect on January 1, 2020, California’s Assembly Bill 5 is changing the way companies have to classify temporary workers. For companies that use business models based on staffing out or using 1099 contractors, they now have to prove that their contractors are:
These restrictions are much narrower than previous regulations and are having a massive impact on hourly workers. As January 1st approaches, staffing companies and others whose employees fit these criteria have been tasked with reclassifying their workers as W-2 employees.
For companies that do business by classifying workers who fit these regulations as 1099 contractors, providing no worker protections, reclassification is a challenge. They are tasked with deciding between changing how they treat their employees - giving them the benefits they both need and deserve - and maintaining their current profit margins.
Some staffing companies have already chosen to cease doing business in California, leaving workers without jobs and employers without the personnel they need to do business. If you are one of those individuals, please know that Bluecrew is here for you.
Bluecrew puts the power to see, hire, and manage pre-screened W-2 workers at your fingertips.Start hiring
We’ll match you with jobs that have top pay and great benefits. You pick work that fits your schedule.Start working