Top 2019 Legislative Session Takeaways

​2019 was the first year of a two year legislative session, as well as Governor Gavin Newsom's first year as governor. 
California Govenor, Gavin Newsom
Photo Credit: Gage Skidmore
Key issues such as the Dynamex decision and how California should adjust and enshrine it into statute, to the perceived risks of the Federal Administration to key democratic priorities such as the protection of labor, environment and housing were and will continue to be important issues of focus. In addition, several more targeted environmental proposals were explored, particularly measures focusing on ensuring compliance rather than setting new standards. As construction and industrial material producers, many of the bills signed into law and even vetoed will be of Interest.
Probably the most significant human resource issue this past year in the Legislature was how to address the California Supreme Court's decision in Dynamex, which placed a stricter standard on what is an independent contractor and applies retroactively. The decision was specific to occupations and industries covered by state wage orders. The Governor signed AB 5 (Gonzalez), which codifies Dynamex and expands it to the full Labor Code and does not address retroactivity. During the legislative deliberations, a number of exemptions were added for specific activities. Among these are a business-to-business exemption for situations where a contractor is “providing services directly to the contracting business rather than to customers of the contracting business.” There is also one for licensed contractor-subcontractor relationships, which includes “providing construction trucking services” for a contractor. The trucking provision expires in 2022.
Read the full 2019 legislative wrap up from Adam Harper, CalCIMA Director of Policy Analysis in the most recent issue of CalCIMA Conveyor Magazine .