From KPBS:

“All eyes are on California right now to see how this shakes itself out,” said Jarrett Dieterle with the R Street Institute, a Libertarian think tank based in Washington, D.C.

He believes a compromise to include this new worker category, could set California apart as a nationwide model. But as currently written, Dieterle said AB5 could cost the business sector as much as $6 billion annually.

“So, if a broad swath of California’s workforce was moved over to become employees instead of contractors, it’d have a lot of costs,” Dieterle said, based on a calculation that independent contractors cost businesses just 60 cents on the dollar compared to employees.

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