A new labor bill in California could spell trouble for home health and hospice agencies. AB5, expected to be signed by Governor Gavin Newsom soon, broadens the scope of those individuals who are considered employee and, thus, are entitled to rights such as overtime, benefits, and unemployment.
Among key notes about the bill:
- The bill was written to discourage employers from inappropriately labeling workers as contractors.
- It was designed to target the state’s gig economy, but the home care industry is getting caught in the crossfire.
- The bill mandates that direct contract workers must be removed from control and direction of the hiring entity.
- Under this legislation, it could mean that all home care workers would have to be hired as employees.
