The Honorable Gavin Newsom
Governor of California
1303 10th Street, Suite 1173
The 2026 State of American Business
Discover what U.S. Chamber President and CEO Suzanne Clark and leading business leaders are saying about the state of the economy and the top issues shaping the domestic and global business landscape in 2026 and beyond.
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
