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AB-5 Worker status: employees and independent contractors

Assembly Bill (AB) 5 will begin to impact the California workers’ compensation market on July 1, 2020. We’d like to help you prepare by sharing with you what we know about the bill, and the initial steps we’re taking to prepare to implement it. (Note that AB 5 impacts work comp policies beginning July 1, regardless of effective date.)

A helpful resource for you

To make understanding the implications of AB 5 easier, we’ve created an overview of the bill and its background for context. Please keep in mind this overview is for informational purposes only, and is not intended as legal or professional advice.

How we’re preparing for AB 5

1. A team to assess how this bill will alter our underwriting, claims, auditing, billing, and servicing processes and procedures. Our goal is to leave no stone unturned and think through all the impacts for our customers. As we work through these changes, we’ll stay focused on their business needs and how we can make compliance with AB 5 as smooth as possible. We’ll share more information with you as soon as we determine our specific procedural changes.

2. We’re developing additional informational resources and will make them available in early 2020. We’ll let you know as soon as they’re ready. We’re also tracking all legal and legislative developments such as related lawsuits and 2020 ballot initiatives opposing AB 5. We’ll keep you informed on any rulings or measures that might affect your clients’ policies.

One way you can help your company minimize the impact:

Some employers will pay more premium as a result of AB 5. You can minimize the impact of reporting payroll for newly classified employees beginning July 1, 2020, regardless of policy effective date. Doing so will spread any financial impact across their remaining payments and will help you avoid unexpectedly large final bills.

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Any questions, thoughts or comments about anything workers comp or insurance related, please connect with our team. We are here to help you:

Phone: 951-239-4494
Email: [email protected]
Text: (951) 482-8144

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