On Sept. 19, Gov. Gavin Newsom signed into law Assembly Bill 5 (AB 5), a sweeping new law that makes it significantly more difficult for most workers in the state to qualify as independent contractors. With the governor’s approval, the California Legislature has once again enacted a law that imposes significant changes on companies without providing much of a roadmap for compliance. The law takes effect on Jan. 1, 2020.

Although the national media has largely focused on the effects on ride-hailing, meal delivery and other gig economy workers, the effects of AB 5 are much broader and are worrying those in many industries including technology, media, transportation and entertainment.