Letter to Gov. Gavin Newsom Urging Veto of AB 5

Thursday, September 12, 2019 - 4:30pm

 

The Honorable Gavin Newsom

Governor of California

1303 10th Street, Suite 1173

Sacramento, CA 95814

 

VIA FACIMILE: (916) 558-3160 (one page)

 

 

Dear Governor Newsom:

 

On behalf of the U.S. Chamber of Commerce, I urge you veto AB 5, a piece of legislation recently passed by the California legislature that will disrupt longstanding business practices and threaten the viability of some businesses as a result. The legislation adopts the California Supreme Court’s misguided 2018 decision in Dynamex Operations West, Inc., v. Superior Court, which invented a new standard for determining whether one is an independent contractor versus an employee.  

 

The Dynamex standard, as well as that of AB 5, will have a particular effect on the evolving gig-economy, in that businesses providing a platform to a network of service-providers and their potential customers, such as ride-sharing companies, may find themselves being deemed the employer of those service-providers.  Inasmuch as companies like these provide opportunities to individuals to earn a living as legitimate independent contractors, classifying such contractors as employees will jeopardize those opportunities.

 

In public statements, you have previously indicated support for AB 5, but I urge you to reconsider your support by vetoing the bill so that a more reasonable proposal can be considered.

 

Sincerely,

 

Sean P. Redmond

Executive Director, Labor Policy