AB 5 IN EFFECT AS OF JANUARY 1, 2020

LMFTs, LCSWs and others may lose independent contractor status.

Governor Newsom signed AB 5 in late September. This bill codifies the decision in the Dynamex case and creates a presumption that workers who perform services for a hiring entity are ‘employees’ unless they meet certain criteria, or have an exemption, to qualify as ‘independent contractors.’ With the exception of licensed psychologists, most other mental health professionals including LMFTs, LCSWs, and LPCCs are not exempted. This means that MFTs in many cases will lose their ability to work as independent contractors.

To continue our advocacy efforts on this issue, CAMFT is already working with other stakeholders on next steps. We are also assessing the bill’s impact on LMFTs who contract with private practices and/or agencies and will disseminate information to our membership in the near future.

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