HR technology to streamline your path to AB5 compliance

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About Adia staffing agency

AB5 and the path of least resistance

How do I ensure

Protect your company from liability or misclassification of workers by designating Adia as Employer of Record

How do I keep labor costs under control?

Minimize financial impact of new infrastructure and potential claims by utilizing Adia's technology

How do I minimize operational disruption?

Utilize a plug and play solution to streamline the process to gain compliance

Schedule a free consultation

Determining worker classification

On January 1, 2020, California passed Assembly Bill 5 (AB5), which aims to give greater labor protections, such as minimum wage laws, sick leave, health insurance, and workers’ compensation benefits by limiting the use of classifying workers as independent contractors. If an employer in California wants to treat a worker as an independent contractor rather than an employee, they must pass the “ABC” test:

  1. The worker is free to perform services without the control or direction of the company.
  2. The worker is performing work tasks that are outside the usual course of the company’s business activities. 
  3. The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed. 
Still unsure how to classify your workforce?

Your options to achieve compliance

Employ workers
as W-2

  • Business takes on full HR admin and risk
  • Setup of new business infrastructure
  • Substantial technological investment
  • Implementation time spanning multiple quarters
  • Potential spillover to workers in other states

Designate Adia as
Employer of Record

  • 100% compliance through Adia
  • Plug and play solution
  • Seamless user experience
  • Efficient process through technology
  • Businesses can save up to 20%

Utilize a staffing

  • 100% compliance through staffing agency
  • Several months implementation time
  • Lack of customer centricity in agency model
  • Fully manual process
  • Cost of agency markup incurred

One solution for all your compliance needs

Leverage our full capabilities or embed simple modules into your own technology
  • W-2 classification
  • HR risk and liability
  • Disciplinary action
  • ACA requirements
  • Health insurance
  • Benefits acknowledgement
  • Employment agreements
  • Labor law posters
  • Reaffirmation of affirmative action
  • Arbitration agreement
  • Background check
  • Form I-9 and E-Verify
  • Wage theft notices
  • Break reminders
  • Timesheets
  • Gross to net payroll
  • Paid sick time calculation
  • Pay stub distribution

Ready to streamline your path to AB5 compliance?

Let's get started.