In the last week of California's 2019 legislative session, legislators introduced AB 5. The controversial bill included a new rigid standard, requiring many independent contractors, including insurance agents and advisors, to become W-2 employees of each of their connected carriers.

Thanks to the combined lobbying forces of NAIFA-CA and the IIABCal, life agents, advisors, P&C agents, brokers and health agents were explicitly exempted from the bill. The exemption applies to licensees working for independent agents, brokers and licensees working for captive insurers and direct writers.

Despite the victory in California, NAIFA CHAPTERS MUST REMAIN ON HIGH ALERT. Copycat bills are already being discussed in other states, including New York and Massachusetts. State leaders are encouraged to put their lobbyists on alert and inform their Chapter Government Relations leaders and NAIFA Government Relations staff if such a bill is making its way to their legislature. NAIFA-CA has laid out a successful strategy, has developed useful documents and are eager to share so that this policy does not make its way to any governors’ desk.

Worker classification bills like AB 5 would be detrimental to NAIFA members should one ever pass. With the power of One NAIFA, we can ensure that it would never happen.

WE ASK THAT YOU PLEASE CHECK WITH YOUR LOBBYIST ON WHETHER OR NOT THIS IS A THREAT TO YOUR STATE, AND IF SO, TO EMAIL JULIE HARRISON OR ZACH LEVIN.