Prepared Legal Corp.
The implications of AB 5 are far reaching beyond the intended gig business targets. We’ll see what the new year brings for independent contractors in the legal services industry. California Assembly Bill 5 (2019) took effect January 1, 2020. The bill was introduced by California assemblywoman Lorena Gonzalez then was signed by Governor Gavin Newsom on September 18, 2019.
Many California Freelance Paralegals have already felt AB5's impacts. While Lawyers are exempt from Labor Code §2750.3, Paralegals are not. What does this mean? In scenarios where the ABC Test (which is based on Dynamex) would be used to determine whether a Paralegal is an independent contractor or employee instead Borello would be considered which is far more complex.
Both the Borello test and the ABC test assume that the worker is an employee and the hiring entity must prove that the worker is an independent contractor.
Under Borello, no single factor determines whether a worker is an employee or an independent contractor. So to say doing business as a sole proprietor would be enough to rebut the presumption based on a B2B exemption is not solid enough for me. More importantly, would it be enough for the lawyer you’re hope to contract with.
An inescapable factor considered under Borello is the degree of control and direction required in the Lawyer-Paralegal relationship. BPC §6450 et seq. clearly spelled out, Paralegals perform all services under the direction and supervision of an attorney.
Another factor is whether the work is a regular or integral part of the employer’s [lawyer’s] business, which obviously it is.
Remember, the point of AB5 is to impose an employer-employee relationship. Borello is a “multifactor” test which requires consideration of all potentially relevant facts in the determination whether an exemption exists. No single factor controls.
It is my humble recommendation that LDAs support Freelance Paralegals.
Sacramento County LDA Reg. 2020-03, Exp 08/05/2021
NON-ATTORNEY DISCLOSURE: Prepared Legal Corp. (PLC) is not a law firm. Angela Grijalva is not a lawyer and cannot give legal advice. Neither LDP nor Angela Grijalva can represent you in court. LDP can provide document preparation services at the client's direction. Services provided by LDP are not substitute for the advise of a lawyer. If you have questions regarding the section of appropriate forms, you should seek the advice of a lawyer.
PREPARED LEGAL CORPORATION
LEGAL DOCUMENT PREPARERS
Ph: (916) 750-0073
Fx: (833) 750-PREP
180 Promenade Circle, Suite 300
Sacramento, CA 95834
Sacramento County LDA Reg. 2020-03
CA Immigration Consultant Bond No. 10093100
DIVULGACIÓN DE NO ABOGADOS: Prepared Legal Corp. (PLC) no es un bufete de abogados. Angela Grijalva no es abogada y no puede dar consejos legales. Ni LDP ni Angela Grijalva pueden representarlo en la corte. LDP puede proporcionar servicios de preparación de documentos a nombre del cliente. Los servicios provistos por LDP no sustituyen el asesoramiento de un abogado. Si tiene preguntas con respecto a la sección de formularios apropiados, debe consultar un abogado .