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 ...
Don't forget the brand new batch of payroll taxes from these newly created employees.
I was hoping they would be in the category of those with exemptions.
They will destroy more than Uber.
I live in California and know what I’m talking about.
They pass bills before reading them.
This is a common trait running through liberal legislation.
At the time I was a field engineer, but I had previously worked for an education company as a networking instructor, and had kept my instruction certifications current. The software company Novell had me come in as a contract instructor, to teach a class to their employees on a new product that I had been working with since the alpha test days.
The class was at Novell headquarters in Provo, UT, using Novell's computers, software, and some related training materials. Never mind that I did NOT work for Novell, I worked for a company in Kansas City as a network engineer who also happened to hold Novell Instructor credentials (I was authorized to teach 21 official Novell courses as a "Master Certified Novell Instructor."
But because of the situation of the class, the state and federal governments all claimed that I was an employee of Novell, even though the contract wasn't between Novell and myself, but the company for which I worked. It took multiple lawyers to straighten it out. Eventually I did get "certified" as a contractor for Novell, though it took several weeks and forced the class to be delayed.
Mark
California Democrats are stupid, in competent , Marxists in training. If something works well, they must destroy it. It is a mental illness that can destroy our society. Lobotomies time Nov. 2020.
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