State Senator Andreas Borgeas (R-Fresno) will host a town hall meeting on AB 5, the state’s new contractor rule, at Clovis Community College from 5:30 p.m. to 7 p.m. on Feb. 27.

The forum, “The Future of Our Gig Economy: What to Expect from AB 5,” will cover how the recent landmark ruling and ensuing legislation created a strict test for who is considered an employee or an independent contractor.

Visit the website for more information and to register to attend.

“Nearly two million Californians working as freelancers and independent contractors have lost their jobs due to AB 5,” Borgeas said in a statement. “This haphazard law has negatively impacted dozens of industries in our state and limits those who want to maintain a flexible work schedule. I look forward to hosting an engaging town hall discussion and fighting to repeal this bad law.”

There will also be a discussion on AB 5 with the following panelists: Laura Curtis, policy advocate for the California Chamber of Commerce; Tom Powell, CEO of Cal-Valley Insurance Services, Inc. as well as California Trucking Association Central Valley unit chair; and Paul J. Bauer, an attorney and partner at Sagaser, Watkins & Wieland PC.

The workshop will focus on what the landscape was in determining whether a worker was an independent contractor or employee prior to the California Supreme Court’s decision on the Dynamex case and the new “ABC Test” that will be used.

The discussion will also cover the legal ramifications and penalties that could arise for an employer if a worker is misclassified as either an employee or an independent contractor.

“Individuals are coming to light and trying to deal with this new legislation. They are figuring out how to get to Sacramento to get their own carve outs and work with their different representatives to make the case as to why they should receive the same treatment other selected groups have,” Bauer said.

Some of the industries that are exempt from AB 5 include doctors, lawyers, real estate agents, architects, barbers or cosmetologists, travel agents and others.

With Gov. Gavin Newsom signing AB 5 into law in September 2019, the “ABC test” became the new standard to classify California workers.

Industries exempted from AB 5 will still remain subject to pre-existing multi-factor tests, such as the Borello test, which was used in determining whether a worker was an employee or independent contractor prior to the Dynamex decision.

Powell’s part of the discussion will focus on the impact of AB 5 on independent contractors, specifically truckers, and how it will affect the trucking industry.

Powell said that there is still time for business owners to examine the structure of the business and see what changes might be better for them.

“You have some time now to reexamine what you’re doing as a business, and what is coming back to those independent owners and operators is looking at becoming a corporation — like an LLC,” Powell said. “Look at a federal tax ID number, make sure you have a business bank account, make sure someone is doing their tax returns, and conduct yourself like you were a business as any other business, and do some advertising.”