Assembly Bill 5 (AB 5) is a California law enacted in 2019 that aims to clarify the classification of workers as either employees or independent contractors. The bill establishes a stricter "ABC test" to determine if a worker can be classified as an independent contractor, making it more challenging for companies to do so. This change primarily affects gig economy workers and industries that rely on freelance labor. The law was designed to provide greater protections and benefits to workers, such as minimum wage, overtime pay, and unemployment insurance. However, it has faced criticism from various groups, including rideshare companies and freelancers, who argue that it limits flexibility and opportunities for independent work.