California AB 5

How to Draft a California AB 5–Compliant Independent Contractor Agreement for a SaaS Startup in 2026

How to Draft a California AB 5–Compliant Independent Contractor Agreement for a SaaS Startup in 2026

In California, a SaaS startup must satisfy the AB 5 “ABC test” (or a statutory exemption) to classify a worker as an independent contractor in 2026. Misclassification can trigger wage-and-hour liability, penalties, and PAGA exposure. This article explains how to draft an AB 5–compliant independent contractor agreement for common SaaS roles, including key clauses, exemption […]

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How to Classify Remote Workers in California (W-2 vs 1099) Without Triggering AB 5 Misclassification Penalties

California’s AB 5 uses the “ABC test,” and failing any one prong can expose employers to civil penalties, back wages, tax exposure, and PAGA claims. Remote work complicates classification because location, control, and the worker’s “usual course of business” can be harder to document. This article explains how to classify California remote workers as W-2

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