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California’s AB-5 makes it significantly harder for day spas and massage therapy centers to classify certain service providers as independent contractors. That means you’ll be required to undertake benefits like overtime, unemployment insurance, worker’s compensation, health care and other costs on behalf of this new workforce.
We’re here to help you navigate the required changes so you and your employees are able to successfully overcome the various challenges caused by AB5—and to help you avoid costly penalties.
Our HR pros understand all of the ins-and-outs associated with classifying employees. They do it every day. Our team also handles other HR tasks, including worker’s comp claims, managing risk and safety issues, processing payroll, and overseeing benefits - all while you continue to focus on day-to-day business operations.
As the owner, I was also the HR manager. It made me invest a lot of my time in figuring out everything on my own. The team at Avitus Group walked me through everything step-by-step, explained it all and whenever we need them they're there."
Member since 2014
"Avitus Group allows us to be able to dedicate our resources and precious time toward our business, and really focus on what we do best."
Member since 2002
Various California agencies, including the Labor Commissioner’s Office, the Employment Development Department and the Franchise Tax Board, have authority over workers misclassification. AB5 also empowers the attorney general, large city attorneys, and local prosecutors to sue companies over violations. The city attorneys of San Francisco and Los Angeles both appear ready to act on this law.
The new law goes into effect January 1, 2020—so act now to make sure you’re in compliance from Day 1. Talk to one of our knowledgeable representatives to get started.
Do you still have questions about AB-5 and what it means to your business? Download our free guide to learn more.
We're confident we can help. With our large group buying power we're able to help small and medium size businesses offer great benefit packages to their employees while keeping the costs reasonable.
Give us a call or email us for more info.