DSA Applauds California Governor Newsom for Signing AB 5

California Governor

The Direct Selling Association (DSA) applauded California Governor Gavin Newsom for signing Assembly Bill 5, which includes an exemption for direct sellers.

Without the exemption, the bill would have created an uncertain framework for more than 2.2 million Californians involved in direct selling.

“We want to thank Assemblywoman Gonzalez and interested stakeholders for working with DSA and including exemption language,” said DSA President Joseph N. Mariano. “This language will allow the direct selling industry to continue thriving in California and independent salespeople to continue having the freedom and flexibility to operate their businesses. We want to thank all our member companies who engaged with elected officials in California to express the importance of the business.”

The language in the bill incorporates state Unemployment Insurance Code Section 650, which has classified direct sellers as independent contractors for over 20 years. DSA hopes as state and federal elected officials consider similar bills to include similar language that direct sellers are clearly and specifically independent contractors.