Assembly Bill 5 in California is a long and complicated ruling that makes it harder for companies to label workers as independent contractors. 

Signing Assembly Bill 5 has upended long-standing employment practices that seeped into the Democratic presidential debate about how employees should be treated, more so in today’s gig economy. Doctors, real estate agents, and hairdressers can keep their independent contractor status, but this currently does not apply to truckers, nail salon workers, physical therapists, commercial janitors, and gig economy workers, who will gain the rights and benefits of employees in California under sweeping workplace legislation. 

Freelancers are in a dilemma on whether it will be beneficial or detrimental to their business. The bill is bound to make huge waves regardless of the industry. The Assembly Bill:

• Changes who is considered an independent contractor, making it stricter than the current federal guidelines. 
• It hits app-based companies particularly hard.
• Extends protective benefits to freelancers like unemployment and healthcare and a guaranteed minimum wage of $12 per hour for those who qualify.
• Has occupational exceptions e.g. doctors, engineers, architects, hair stylists, and independent manicurists. 
• Lastly, one is limited to 35 content submissions for any client within a given year. 

On the other hand, anyone designated an employee would start receiving benefits such as unemployment insurance, overtime, and health care. This will essentially offer gig workers a security net.

The question for debate is, was passing Assembly Bill 5, providing gig workers benefits of employees, a good or bad decision?