The jobs are just moving. And the internet makes that very easy.
California’s tax authority has been insane, trying to collect income taxes from people in other states paid by California firms. And in some cases, people who sold high dollar items to California.
Now, California Can Assess Taxes No Matter Where You Live...Really
https://www.forbes.com/sites/robertwood/2019/10/22/now-california-can-assess-taxes-no-matter-where-you-livereally/
This has created several ongoing shifts in the freelancing world. (I do this for a living.) Platforms are banning California residents from taking new assignments, because they don’t want the person classified as an employee. Requestors of projects are refusing to work with people in California. I’ve been asked to not only confirm I live in Texas but prove it.
Another possible out for these requestors is to move to another freelancing platform not based in California. Upwork loses work, iwriter gains it.
Another issue is that platforms can easily migrate servers and locations. Imagine the company based in Silicon Valley saying we’re now in Texas or Florida. Congratulations, that state’s laws apply. They can continue issuing projects from requestors to freelancers, and California loses a taxpayer who can move more easily than anything else.
The last ditch move for some of these firms is entirely relying on international talent. If the freelancers are in India and China, you don’t have to worry about U.S. employment rules.
What is telling to me, is how AB5's sponsor is basically saying "tough luck" to those freelancers who are hurt.