AB-5 added exemptions allowing more employees to be contractors to the pre-existing rule articulated, based on prior statute law, by the California Supreme Court.

right but you can also just wait for California to challenge the 1099 distinction

OP wanted to be an employer and "make jobs" for the sake of printing job numbers, rustbelt mentality.

if they had more employees, elsewhere, it wouldn't have happened, if they actually did have the relevant counsel it wouldn't have happened. but they aren't able to or willing to afford either. lesson learned. likely the wrong lesson learned.

Allude not elude.