AB5 Bill

​There’s No Need to Gamble With The New Gig Economy – Or Your Business

Small, mid-size and large corporations, partnerships, LLCs, S-Corporations and nonprofit entities have a better option than wagering whether or not they’ll be affected by the recent legislation taking effect January 1st, 2020.


AB5 Will Affect How Your Business Operates, No Matter What

Under the ruling, when in doubt – a worker is now considered an employee. This technically means that any existing employee skill cannot be additionally extended by the hiring of a contract worker; companies with 50 or more workers are required by law to enforce this regulation by providing mandatory benefits – including healthcare, unemployment, workman’s comp, and social security contributions.

State and federal agencies will have absolute power and authority:

  • To charge civil penalties of between $5,000 and $25,000 per misclassification violation.
  • To determine any pattern or practice of repeat misclassification, and increase minimum fines to $10,000 per violation.
  • To require the offending company to place a notice of violation on a prominent location of their own website for a minimum period of 1 calendar year.
  • To give the IRS leeway to assess a penalty of 1.5% of the wages paid to any independent contractor – and that penalty doubles up to 3% if the company failed to file an appropriate 1099.
  • To hold the entity liable for all federal income tax which should have been withheld from the independent contractor, and the share of all Medicare and Social Security taxes.
  • To levy a 10% penalty on any unpaid state payroll income tax, which if withheld, can be charged as a criminal misdemeanor offense in the state of California.

The reality of the financial consequences for any entity that chooses to ignore the demands of the Dynamex Opinion will be staggering – for businesses and organizations of ANY size.

JISEKI + MEC Plan Can Help You Maintain Your Competitive Advantage

JISEKI’s plus MEC Plan offering is a simple, accessible, and affordable supplemental benefits plan built around many of the core social determinants of health: Clinical Health, Mental Health, Legal Assistance, Financial Wellness, and Emotional Wellbeing. With JISEKI, you can offer your workers a whole person approach that no one else can – and that satisfies their needs as well as that of your business:

  • Eliminate the possibility of AB5 penalties by offering your employees cutting edge mobile platform industry benefits – at the touch of a button.
  • Increase productivity, reduce absenteeism, and improve worker engagement on and off the clock via 24-7 mobile access to care – wherever your workers may be.
  • Decrease operational costs by ditching pricey healthcare plan premiums that are rarely used, require doctor’s visits, and take time away from work and home.
  • Empower your people – give them the freedom to choose how they interface with their benefits, and loyalty and appreciation will surely follow.

JISEKI + MEC Plan is a great choice for businesses looking to satisfy Dynamex demands – without sacrificing operational costs and simultaneously modernizing how employees receive benefits.”

Minimum Essential Coverage (MEC) is the coverage that an individual must maintain to meet the individual responsibility requirement, should not be confused with minimum value (MV), a measure of a plan’s comprehensiveness. These MEC plans are PPACA compliant.
These benefits and rates are illustrative and are not a guarantee of coverage or costs. Actual benefits and rates will be underwritten based on the employee/dependent data submitted. Please refer to carrier and administrator documents for exact specification.
This program is marketed and sold by the licensed agents of Pendella, LLC. Pendella, LLC is a licensed insurance agency based on the State of Florida.