With the recent passage of Assembly Bill 5 (AB 5), California has dramatically reshaped the relationship between independent contractors and their clients. An estimated 1 million Californians who are currently classified as independent contractors may be reclassified as employees under AB 5, beginning January 1, 2020. Businesses that have become accustomed to using lower-cost independent contractors to perform critical business functions will need to revisit these arrangements and make necessary operational and pricing adjustments to comply with the new rules.