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CHA News

New Labor Law Necessitates Review of Employment Classification

For CEOs, human resources executives

CHA has provided member hospitals with important information about a new test for determining whether a worker is properly classified as an independent contractor or should be treated as an employee. Assembly Bill (AB) 5 has been signed into law by Gov. Newsom and takes effect Jan. 1 2020, posing greater challenges for hospitals in ensuring they comply with California’s labor laws. 

CHA plans to seek legislation to address hospitals’ concerns. Hospitals should also consult their employment counsel for guidance on their unique circumstances and strategies to mitigate risk.