Still getting 1099'd in California after AB5 - should I push back?

Been doing rideshare and food delivery in LA for about 2 years now. I know Prop 22 covers Uber/Lyft drivers but I also do work for this smaller local courier company thats NOT app based - they just text me routes every morning and I do deliveries for them.

They pay me as 1099, no benefits, I use my own car. But they tell me exactly when to show up, what route to take, I wear their branded shirt. Feels like im basically an employee?

I brought up AB5 to the owner and he said "thats only for big tech companies." Pretty sure thats not right but idk if its worth pushing back. Anyone been thru this?

Your boss is wrong. AB5 applies to virtually all California businesses, not just "big tech." The owner is either misinformed or hoping you won't look into it.

Under the ABC test that AB5 codified, a worker is presumed to be an employee unless the company can prove ALL THREE of these:

• A - Free from control: The worker is free from the control and direction of the hiring entity in the performance of work
• B - Outside usual business: The work performed is outside the usual course of the hiring entity's business
• C - Independent business: The worker is customarily engaged in an independently established trade, occupation, or business

From what you describe, they're failing all three. They control your schedule and route (fails A). Delivery IS their business (fails B). And you're not running your own courier company that serves multiple clients (fails C).

You likely have a strong misclassification claim.

this^

same thing happened to me with a catering delivery gig. they tried to say we were all contractors but we had set schedules, company vehicles, the whole thing. I filed with the labor commissioner and got like 8 months of back wages plus mileage

@delivery_dave_socal how long did the labor commissioner thing take? I dont want to be stuck in some legal battle for years, i still gotta pay rent lol

I filed a wage claim with DLSE last year. Not gonna lie it took about 6 months to get a hearing, then another 2 months for the decision. But I didnt need a lawyer and the filing is free.

You can keep working while the claim is pending btw. Just document EVERYTHING from now on - save those texts where they tell you when to show up, take pics of the uniform, keep a log of your hours. Theyll ask for all of it.

Got $12k in the end between unpaid overtime, missed breaks, and mileage they should have reimbursed.

idk man, is it really worth it? you file a complaint, word gets around, good luck getting gig work in that area again. these companies all talk to each other

not saying youre wrong legally but theres a reason most people just deal with it

@realistic_steve Retaliation for filing a wage claim is illegal under Labor Code 98.6. If they blacklist OP, that's a separate violation with its own penalties.

That said, I understand the practical concern. A few options to consider:

1. Anonymous tip to DLSE. You can report the company without identifying yourself. The Labor Commissioner may investigate on their own.

2. Wait until you're ready to move on. The statute of limitations for wage claims is 3 years for most violations, 4 years if you claim breach of contract. You dont have to file immediately.

3. Talk to coworkers. If multiple people file together or you pursue a class/PAGA action, theres more protection and more pressure on the company to settle.

following to see what OP decides. and yeah document everything. i had texts going back 6 months and it made my case way easier

also fwiw the company i filed against is still in business and still hiring, they just actually classify people correctly now lol. sometimes these complaints fix the problem for everyone

Update for everyone who was following this. Talked to a couple other drivers who work for the same company and turns out 3 of us feel the same way. We started keeping detailed logs like you all suggested.

One of the guys found out the owner got hit with a similar complaint back in 2022 and just paid it off quietly. So this isnt even his first time pulling this.

We're thinking about doing a group complaint together. @EmploymentAttorney is that the PAGA thing you mentioned? How does that work exactly?

@gig_worker_la Good progress on documenting and connecting with coworkers. You have a couple options:

Individual wage claims filed together: Each of you files your own claim with the Labor Commissioner. Theyll likely consolidate the hearings since its the same employer. Simple process, no lawyer needed.

PAGA claim: The Private Attorneys General Act lets workers sue on behalf of themselves AND the state for Labor Code violations. You'd need an attorney for this, but many take these on contingency. The advantage is penalties can add up quickly ($100/employee for initial violations, $200 for subsequent), and 25% goes to the employees while 75% goes to the state.

Class action: More complex and requires certification, but could cover all current and former workers. Also requires an attorney.

Given that he's apparently a repeat offender, a PAGA claim might get his attention. Many employment attorneys offer free consultations for cases like this.

Just found this thread and wow, I'm in almost the exact same situation up in SF. Small courier company, they set my schedule, I use their bags and wear their logo, but they insist we're all 1099.

The thing that gets me is they even do performance reviews and can "fire" us. How is that not an employment relationship??

OP keep us posted on what happens. Thinking about filing too but nervous about it.

@sf_courier_2024 yeah the performance review thing is wild. They treat us like employees in every way except the paycheck.

Quick update: We found a lawyer who's taking our case on contingency. She said with 3 of us plus documentation going back almost a year, we have a solid PAGA case. Apparently the penalties for willful misclassification are even higher and since the owner already got caught once before, that could help us.

She also mentioned that starting in 2024 there were some new enforcement mechanisms added that make it harder for companies to drag these cases out. Will update as things move forward. Thanks everyone for the advice!

Found this thread because I'm dealing with something similar in Illinois. Different state laws obviously, but the pattern is identical - small courier company, set schedule, their branded gear, they control everything, but we're all "independent contractors."

Illinois passed its own version of the ABC test in 2024 under the state's Employee Classification Act. Not as well-known as AB5 but basically the same idea. The penalties here are steep too - up to $1,500 per violation for first offense, $2,500 for repeat offenders.

What really gets me is these companies KNOW they're misclassifying us. They just calculate that most workers won't fight back. I've been logging everything for 4 months now - texts with dispatch times, photos of the uniform, screenshots of the "performance scorecard" they send us weekly. If that's not an employment relationship, I don't know what is.

@gig_worker_la rooting for you on the PAGA case. Keep us updated.

Wanted to drop in with an enforcement update that's relevant to this thread. California's Labor Commissioner has significantly ramped up misclassification enforcement for 2026. Governor Newsom's office announced in December that DLSE is adding 40 new investigators specifically dedicated to gig economy misclassification complaints.

A few things to know about the current landscape:

Faster processing: The backlog that used to mean 6-8 month waits for hearings has improved. Recent filers are reporting 3-4 months to hearing in the LA and SF offices.

Higher penalties: AB 594 (effective 2024) gave the Labor Commissioner expanded authority to pursue penalties without waiting for individual complaints. If your employer has a history of violations - which sounds like the case here - the penalties stack up fast.

Cross-agency coordination: DLSE is now sharing data with EDD and the Franchise Tax Board. When a misclassification complaint comes in, it can trigger audits from multiple agencies simultaneously. This puts enormous pressure on employers to settle.

@GigWorker_Chicago - Illinois's Employee Classification Act is solid. File with the Illinois Department of Labor. They've been active on enforcement too, especially in the logistics and delivery sector.

UPDATE: Big news everyone. Our PAGA case is officially filed as of last week. Our attorney served the notice on the Labor and Workforce Development Agency and the employer on January 30th.

Even better - after we filed, two MORE drivers from the company reached out to our lawyer wanting to join. So we're now 5 aggrieved employees total. Our attorney says this strengthens the case significantly.

The owner already lawyered up and his attorney sent a letter trying to settle before LWDA responds. Our lawyer says that's actually a good sign - means they know they're exposed. She's advising us not to settle too quickly because the penalties for willful repeat misclassification (which this is, since he got caught in 2022) could be substantial.

Thank you to everyone in this thread. Honestly I never would have known my rights if I hadn't found this forum. @EmploymentAttorney your breakdown of the ABC test is what gave me the confidence to push forward. Will keep updating as things progress.