Landmark California Law Offers New Protections, Greater Economic Security for Misclassified Workers

A groundbreaking California law that IBEW members fought for will extend job rights and benefits to hundreds of thousands of workers long misclassified by employers as independent contractors.

“This bill gives millions of workers basic protections and fundamental rights in the workplace,” Ninth District International Vice President John O’Rourke said. “This is a huge victory for all working people in California. I hope it sets the stage for the adoption of similar legislation across the country.”

Ninth District IVP John O’Rourke, left, with California Gov. Gavin Newsom.

Gov. Gavin Newsom signed the bill Sept. 18, a week after it passed with unanimous support from Assembly and Senate Democrats, and none from Republicans. The law goes into effect in 2020.

“Today, we are disrupting the status quo and taking a bold step forward to rebuild our middle class and reshape the future of workers as we know it,” said Assemblywoman Lorena Gonzalez, the bill’s author.

“Working Californians who have been kept off payroll as employees will gain access to basic labor rights for the first time, including rights to minimum wage, overtime, unemployment insurance, workers’ compensation, paid sick days, paid family leave, workplace protections against harassment and retaliation, and the right to form or join a union,” she said.

While other states have taken steps to address misclassification by extending jobless benefits and workers’ comp to independent contractors, California’s law is considered the most sweeping action yet. In addition to dealing more broadly with the gig economy, it gives the state and cities the right to override arbitration agreements by suing companies that misclassify workers.

Federally, Democrats in the U.S. House are taking on the issue through the Payroll Fraud Prevention Act, which had its first hearing in September. “The evidence is clear that misclassification violates workers’ rights, damages law-abiding businesses, and increases the burden on taxpayers,” said Alma Adams, chair of the Subcommittee on Workforce Protections.