October 31, 2019

New California Law to Change Classification of Many AHPs

On September 18, California Governor Gavin Newsom signed Assembly Bill No. 5 (“AB 5”), a law set to dramatically change the classification of at least a million workers across the state, including many allied health professionals (AHP). AB 5 received much attention due to the expected impacts on the “gig economy,” but also has significant implications for the many healthcare workers, including AHP’s who currently function as independent contractors. While physicians, dentists, podiatrists, and psychologists are exempt from AB 5, AHPs are not and may fail to meet all three components of the ABC Test necessary to show that they are independent contractors. For example, a CRNA who works for an anesthesia group would not be perform[ing] work that is outside the usual course of the hiring entity’s business (part “B” of the ABC test), and thus may not properly be classified as independent contractors.