The far-reaching, harmful effects of Assembly Bill 5, which redefines how a business can hire an independent contractor versus an employee, go way beyond increased labor costs and lack of flexibility for workers, or even expensive fines and penalties, as the editor notes in her article. AB 5’s real harm is that it will destroy businesses and business owners across the state who will soon be hit hard by an explosion of Private Attorney General Act lawsuits, which allow one employee to sue their boss on behalf of all the employees at that company in a class-action lawsuit. As if it weren’t enough, the suits can be filed retroactively for four years, even if the business was acting in accordance with the law at that time. These unwarranted suits threaten to shut down businesses owned by millions of hardworking Californians, the effects of which will be felt by employers, employees who may lose their jobs and consumers who will pay more for goods and services as the state’s economy takes a nosedive.
Maryann Marino, Southern California Regional Director
Citizens Against Lawsuit Abuse