Posts tagged AB 5
Commentary: The 2026 Battle of Trenton
May 12, 2026 // Unfortunately, my camera failed to record video of my testimony, and there is no video from the state—only an audio recording of the hearing. But suffice it to say that, as usual, I found myself in a hearing room largely dominated by men, testifying before a panel of senators who are all male, as debate raged about policy that economic research shows is already having a disproportionate and negative impact on women.
Commentary: Freelancers are not victims. Federal regulations should stop victimizing us
April 7, 2026 // The Trump 2026 IC rule follows the framework of the Trump 2021 IC rule, but applies modifications to the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and the Migrant and Seasonal Agricultural Workers Protection Act (MSPA). The modifications narrow previously broad language on what constitutes an “employee,” while delineating that independent contractors are not employees. The 2026 IC rule further nullifies the six-factor “economic reality” test housed in the 2024 Biden IC rule.
Commentary: The Labor Department Just Freed Contractors—Again. Congress Still Needs To Act.
April 6, 2026 // Fortunately, at the state level, more durable change is happening. Rather than trying to reclassify workers as employees, numerous states have begun experimenting with what's known as a portable benefits model. Under this framework, independent contractors in the gig economy are given access to SEP IRA–style accounts in which both they and gig companies can contribute. The funds from these accounts follow the contractors from job to job, rather than being tied to a single company, and they can be used for benefits like health insurance, retirement funds, or paid time off.
Commentary: The Federal Government Just Moved to Restore the Owner-Operator Model – Here Is What Actually Changed, What Did Not, and What You Still Need to Watch
March 16, 2026 // Three times in five years. That is how many times the federal standard governing whether an owner-operator is legally classified as an independent contractor or an employee has fundamentally shifted under the Fair Labor Standards Act. The 2021 Trump rule. The 2024 Biden rule. And now, on February 27, 2026, the Department of Labor’s formal proposal to rescind the 2024 rule and return to something close to the 2021 framework. Each time this pendulum swings, the trucking industry produces a wave of celebration or alarm depending on which direction it moved. The industry’s reaction to this latest move has been heavily celebratory — and not without reason. But if you are running a small fleet or operating as an owner-operator, the celebration needs to come with a clear-eyed understanding of what this rule change actually does, what it does not do, and where the real risk to your business model still sits.
Watson Commentary: Making the AFL-CIO great again: labor policy in 2026
January 20, 2026 // The biggest labor issue of all might be the changing composition of what remains of the union movement. Goodbye, manual-labor men; hello purple-haired they/them grad students.
Likely 1st AB5 trucking enforcement action in California snags 3 companies
November 18, 2025 // The combination of penalties assessed plus interest totals $868,127.76. Of that, about $663,000 is expected to be paid to employees. California’s action is not a settlement with the three companies. Sources said the three are expected to appeal and the LCO spokeswoman said the case remains “in litigation.” According to state documents, the appeals process is not in state or federal courts, though presumably an unhappy company could turn to those venues at some points. Rather, they are with the state’s Labor Commissioner.
Op-ed: I had to leave California to save my business. Now there’s hope
August 12, 2025 // Running my truck as a small business allowed me to take long hauls across the country — sometimes bringing my children along — while keeping the flexibility and control that mattered most for my family’s well‑being. And I took pride in serving as a role model: showing that women can thrive behind the wheel, own their business and contribute to America’s supply chain. Thanks to leaders like Rep. Kiley, Washington is finally recognizing that independent contractors deserve the same respect and freedom as traditional employees. I hope the Senate moves quickly to pass this bill and send it to the president’s desk.
One Big Beautiful Law on American Radio Journal
July 7, 2025 // This week on American Radio Journal: Lowman Henry talks with Vincent Vernuccio from the Institute for the American Worker about the proposed Employee Rights Act of 2025;
Op-ed: America must lead on the gig economy — or others will set the rules
June 10, 2025 // Look at California’s catastrophic Assembly Bill 5, which tried to reclassify most independent contractors as employees. Instead of improving livelihoods, it triggered chaos. Freelancers across media, transportation, tech, and the arts lost contracts overnight. Self-employment rates cratered. Only after a voter revolt and economic fallout did lawmakers scramble to undo the damage, carving out one exemption after another — a slow-motion admission that they had gone too far. Now, the ILO wants to make AB 5 the global gold standard for the gig economy.
ATA Endorses Modern Worker Empowerment Act
May 26, 2025 // The ATA official also pointed to a Republican-sponsored bill as a tool meant to reinforce the industry’s support for the Trump-era independent contractor model. The Modern Worker Empowerment Act, introduced by Rep. Kevin Kiley (R-Calif.) in February, would establish a comprehensive test for arriving at a worker classification. “If enacted,” Mehrens explained, “this bill would codify the common-sense framework from the first Trump term to determine whether an individual is an independent contractor or an employee.”