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California’s new employment law has boomeranged and is starting to crush freelancers
CNBC ^ | December 11, 2019 | Elaine Pofeldt

Posted on 12/12/2019 9:56:12 AM PST by karpov

...

AB 5 has sent shock waves through the world of companies that employ freelancers and the independent workers whom they rely on since it passed. The law codifies the ABC test — which helps employers determine who should be classified as a freelancer — giving exemptions to some types of freelancers, such as architects, doctors, insurance agents, lawyers, grant writers, real estate agents, tutors, truck drivers and manicurists.

The law, which takes effect Jan.1, 2020, could cost the employers a lot of money. It says the exemptions are retroactive. The California Supreme Court just announced this week it will make a decision on whether the ABC test applies to contractor relationships prior to April 30, 2019, before the California Supreme Court opted to use the ABC test in the court case Dynamex Operations West Inc. v. Superior Court of Los Angeles.

It has many unicorns, including Lyft, DoorDash, Instacart and Uber worried about their business model scrambling to launch a voter initiative to roll back the effects of AB 5. The statewide measure, the Protect App-Based Drivers & Services Act, proposed for a November 2020 ballot, would give ride-share drivers and couriers an earnings guarantee of at least 120% of minimum wage and certain benefits and protections but allow them to remain independent contractors who set their own work hours.

Franchisors are also worried that their franchisees could be reclassified from their traditional designation as independent contractors to employees. The International Franchise Association lobbied to get an exclusion from the law, but it wasn’t granted.

“I don’t believe legislators realized the impact this had,” says Gene Zaino, founder and executive chairman of MBO Partners, which studies the freelance economy and provides back-office services to freelancers. “This was really designed to create a safety net for people that needed it.’”

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; US: California
KEYWORDS: ab5; california; commiefornia; freelancers; gavinnewsom; jerrybrown
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1 posted on 12/12/2019 9:56:12 AM PST by karpov
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To: karpov
Yet another failure of socialism.

Image result for surprised pikachu

2 posted on 12/12/2019 9:58:32 AM PST by KC_Lion
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To: karpov

“I don’t believe legislators realized the impact this had...” They never do. And they never care.


3 posted on 12/12/2019 10:00:02 AM PST by DPMD
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To: KC_Lion; karpov

“Yet another failure of socialism.”

It’s only a failure if this is an unintended consequence of this law. And that may not be the case.

The 3rd world socialists running California are hostile to business, and particularly the kind of small business that is free from heavy regulation.


4 posted on 12/12/2019 10:03:31 AM PST by Pelham (Obama. Seditious conspiracy. Misprision of treason.)
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To: karpov

Big corporations love stomping the little guy with big socialist government help.


5 posted on 12/12/2019 10:06:19 AM PST by Phillyred (Kieran Hussie)
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To: karpov

California legislators giving da business to California business.. Business as usual.

If this state could implode from corruption, it would.


6 posted on 12/12/2019 10:21:34 AM PST by NormsRevenge (Semper Fi - Monthly Donors Rock!!!)
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To: karpov

California legislators giving da business to California business.. Business as usual.

If this state could implode from corruption, it would.


7 posted on 12/12/2019 10:21:34 AM PST by NormsRevenge (Semper Fi - Monthly Donors Rock!!!)
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To: karpov

Owner/Operators of trucks are getting squeezed.


8 posted on 12/12/2019 10:22:50 AM PST by ptsal ( Media & DNC word game. It wasn't spying, it was just surveillance.)
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To: karpov

The affected may complain but will still vote for Democraps next election.
There is NO connecting the dots for these legislators or their voters


9 posted on 12/12/2019 10:26:01 AM PST by jcon40 (The other post before yours really nails it for me. IOr keep people from / PC ing in ver and alway)
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To: karpov

Thanks a lot, you farging iceholes, from those who are on a meager fixed income, disabled and dependent on services such as Instacart as their only means of getting groceries.


10 posted on 12/12/2019 10:26:58 AM PST by Fast Moving Angel (The words of the prophets are written on the Facebook walls and tenement halls.)
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To: karpov
“I don’t believe legislators realized the impact this had,” says Gene Zaino, founder and executive chairman of MBO Partners

This has a creepy feel to it, as if legislators are some kind of super-humans who would never do something bad unless something derails their heroic attempts at fixing all our lives. I have news for you, Gene. The class of taxpayer-supported leeches known as legislators are perfectly capable of not caring about bad side effects, of doing things that are just plain stupid, of doing things to advance an agenda that helps them and not you. If you work for a living, they're no smarter than you are, and most likely less so.

11 posted on 12/12/2019 10:35:47 AM PST by Still Thinking (Freedom is NOT a loophole!)
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To: Pelham

Pelham wrote: “The 3rd world socialists running California are hostile to business, and particularly the kind of small business that is free from heavy regulation.”

Has nothing to do with regulation and everything to do with unionization. If independent contractors belonged to unions, this law would never have been passed.


12 posted on 12/12/2019 10:39:26 AM PST by DugwayDuke ("A man hears what he wants to hear and disregards the rest")
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To: karpov

Most laws that carve out exceptions that merely establish protected groups that otherwise are no different than everyone else, are usually ethically and morally wrong to begin with. If the idea is “right” then why isn’t it univerally right. The answer is political. They need some of the population to support the law, against the others to whom the law will apply, so enough votes have to be bought to get the law passed, which would be impossible if it was going to be applied universally.


13 posted on 12/12/2019 10:41:52 AM PST by Wuli
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To: karpov

You have to understand what laws are for in californication. Propose anything controversial and then milk contributions galiore from all sides. This is why crooks pay millions of dollars for a temporary $174,009 job. Sell your votes to the highest bidder but be sure to collect ALL bribes from all sides FIRST.


14 posted on 12/12/2019 10:41:52 AM PST by faithhopecharity ( “Politicians are not born; they are excreted.” Marcus Tullius Cicero (106 to 43 BCE))
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To: karpov

It doesn’t affect the state. When I run a dozer under contract for Cal Fire, I am doing precisely what full-time firefighters do but as a freelance contractor. If the government had to abide by the inane laws they pass, they might not pass so many.


15 posted on 12/12/2019 10:46:39 AM PST by rey
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To: karpov

They knew exactly what they were doing, they wanted to destroy Uber.


16 posted on 12/12/2019 10:47:05 AM PST by Vince Ferrer
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To: karpov

Is this just a rehash of the 1099 vs W2 question?


17 posted on 12/12/2019 10:54:18 AM PST by gloryblaze
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To: Pelham

Exactly... and I would state they are most hostile to non union jobs.


18 posted on 12/12/2019 11:02:00 AM PST by DoughtyOne (Pledge: "...and to the Democracy for which it stands..." I give up. Use the democRat meme...)
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To: Vince Ferrer
They knew exactly what they were doing, they wanted to destroy Uber.

Uber didn't pay up, too bad for them.

19 posted on 12/12/2019 11:03:04 AM PST by Steely Tom ([Seth Rich] == [the Democrats' John Dean])
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To: karpov

The ones getting exemptions are the ones paying tribute.


20 posted on 12/12/2019 11:03:28 AM PST by fruser1
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