California’s Small-Business Owners Struggle With Contractor Law

California’s Small-Business Owners Struggle With Contractor Law
Retail space for lease in a strip mall in Fontana, Calif., on Oct. 8, 2009. David McNew/Getty Images
Brad Jones
Updated:

Steve Thompson is one of California’s many small-business owners struggling with a state law restricting freelance work that went into effect on Jan. 1.

His company, Aspen Risk Management Group, has joined 11 other companies in a lobbying effort against the law, Assembly Bill 5 (AB 5). The law essentially prohibits work on a freelance basis, with some exceptions.