Skip to comments.California Governor Signs Law on Gig Economy That Could 'Gut the Music Industry
Posted on 12/20/2019 10:19:33 AM PST by DoodleBob
California's governor on Wednesday signed sweeping labor legislation that aims to give wage and benefit protections to rideshare drivers at companies like Uber and Lyft and to workers across other industries.
The closely watched proposal could have national implications as lawmakers, businesses and unions confront the changing nature of work and the rise of the so-called gig economy.
"California is now setting the global standard for worker protections for other states and countries to follow," Democratic Assemblywoman Lorena Gonzalez, the bill's author, said in a statement.
The legislation signed by Gov. Gavin Newsom makes it harder for companies to classify workers as independent contractors instead of employees, who are entitled to minimum wage and benefits like workers compensation.
While effect on ridesharing and meal delivery companies has seized the spotlight, according to Gonzalez, it affects up to a million workers. That includes those working in the state's music industry and executives have warned the law would specifically crush the independent sector. Under the new law, producers, engineers, publicists, managers, dancers, background vocalists and others hired by artists could be defined as employees and subject to stringent employment regulations.
"Unless there is an exemption for the music industry, it will make every studio engineer, employees for whoever is hiring them," American Association of Independent Music (A2IM) president and CEO Richard J. Burgess told Billboard earlier this month. "On a practical level, I don't see how it can work."
Gonzalez told Billboard she had been meeting and discussing all year with artist unions and the recording industry on how this bill would impact the work of musicians, but that in the end the music industry could not come to a consensus on language. Instead, the groups preferred no amendmendment in AB5.
(Excerpt) Read more at billboard.com ...
We’re gonna protect them all the way to extinction!
The gig economy is tough on most workers. But, at least they are working.
California is raising the price of this sort of labor, and creating rigidities in labor.
There will be fewer people working as a result.
So our future is based on a state that allows people to poop wherever they want. Wonderful.
They’ve sided with Uber instead of with the music industry? A bold move. Let’s see how it works out for them.
law would specifically crush the independent sector.
Orwell was right about everything but the date.
The Marxists are full fledged out of their closet now and running wild.
Amazing how people who’ve never run a business attempt to tell people how to run a business.
The recording industry has pretty much already moved to Nashville anyhow.
I feel sorry for the people out there, because that's one of the few places one can actually make a living making music. Most of us have to have a day gig, be that teaching or whatever.
Wouldnt hiring a neighborhood kid to mow the lawn be similarly affected along with all other informal job arrangements?
what is dumb about this law is that most people who drive for uber also drive for lyft and have both apps open at the same time... making them the exact definition for a contractor. They work for multiple companies providing services.
Show biz people wanted socialism, now they have it. The foundation of having the government regulate the the economy is regulation of the “employment relationship”. Enjoy.
I know people love to bash artists and California and Blue States and say "serves them right." But they're not all pod-eating Antifa, and this is an excellent teachable moment to pull people on the bubble over to the side of life and liberty.
This is about the state not receiving their cut of tax revenues. Classify independent contractors as employees and have taxes withheld instead of waiting for year end filings. As an employee can you deduct the use of your car?
Yeah, I know a girl who drives for both. She just had a kid, so I haven’t been able to talk to her about any of this yet.
No, they re being fired by the hundreds.
If a group plays for a percentage of the sales, they are NOT employees and not subject to the minimum hourly rate law.
This is about total control of the means of production, or one step on the way to totalitarian control of the economy.
If I lived in California as an Independent Contractor who sometimes hire help from other Independent Contractors, my clients are in trouble, bad trouble.
My clients are very large companies with extremely large clients and have contracts in force that can not be fulfilled when they must make all the independent contractors employees. None, that is zero of these positions are any where near the minimum wage. Our rates are orders of magnitude greater. As our own employers, we have the responsibility of dealing with the various tax authorities under well establihed federal law.
Chaos is going to be the circumstance while the matter is in the courts. A judge needs to provide an injunction until the matter can be decided.
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