State Legislature, LA County Enact Rent Control while Independent Contractor Reclassification Bill Passes
IRWINDALE - It's been a huge week in California politics. The California State Legislature, which will wrap up the 2019 session today, passed a statewide rent control bill that will limit rent increases to 5 percent annually plus inflation while prohibiting the eviction of tenants except for just cause. The measure, AB 1482, will remain in force for ten years. Similarly, the Los Angeles County Board of Supervisors unanimously approved a cap on rent increases in the unincorporated areas of the County, making what was a temporary measure permanent. While most rent control is enforced by local city rent control boards, it is likely the statewide rent cap increase would be enforced by the courts.
Lawmakers in Sacramento also passed AB 5, a landmark bill that enacts the controversial Dynamex decision into state law, thereby reclassifying independent contractors as employees. AB 5 initially earned the support of business groups across the state in the hopes that a workable compromise could be found to preserve the flexibility and benefits of working as an independent contractor while legally reconciling state law with the Dynamex decision. However, a grand compromise did not pan out, with individual industries lobbying for special exemptions and carve outs for their workers. Maintaining independent contractor status is important for the broader economy, to allow for career flexibility for employees while employers benefit from a more affordable and flexible workforce. While there was talk of creating a hybrid employee classification somewhere between a fully independent contractor and a full employee, this proposal was never finalized. Particularly upset with the passage of the legislation was prominent gig companies like Uber and Lyft, who have threatened to support a ballot measure to allow voters next year to over turn AB 5.
Here's how our San Gabriel Valley state lawmakers voted on AB 1482:
Yes on AB 1482: Asms. Calderon, Chau, C. Garcia, Friedman, Holden, Rodriguez; Senators Leyva, Portantino, S. Rubio
Not Voting on AB 1482: Senator Archuleta
No on AB 1482: Asms. Chen, B. Rubio; Senator Chang
Here's how our San Gabriel Valley state lawmakers voted on AB 5:
Yes on AB 5: Asms. Calderon, Chau, C. Garcia, Friedman, Holden, Rodriguez, B. Rubio; Senators Archuleta, Leyva, Portantino, S. Rubio
No on AB 5: Asm. Chen, Senator Chang
For more information, contact Brad Jensen at the Partnership.