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Story perspectives

California's AB 5 Threatens Freelancers, Sparks National Debate

9/2/2025

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Story summary
  • California's Assembly Bill 5 (AB 5) has adversely affected freelancers and small businesses, reducing independent contracting.
  • The law impacts between 600,000 and 3.5 million workers and is influencing other states, including New Jersey.
  • Critics claim that exemptions under AB 2257 and Proposition 22 fail to address AB 5's core issues.
  • Experts caution about possible federal legislation that may impose additional restrictions on independent contracting.