Good grief...CA wants to boost is’s employment numbers? Are they looking for more payroll taxes?
Employers are going to scream because making your former employees independent contractors saves the employers tons of money! It means they don’t pay for workers compensation insurance, no need to offer benefits etc...They’re going to be PO’d.
Yes it’s all about payroll taxes. This has been going on for years. Employers are left with no flexibility to get the work done as they best see fit.
What in the name of sanity and intelligence ever gave you that idea? The one and only thing, other than his legacy of a phallic symbol bullet train homage to his queerdom, Jerry Moonbeam Brown and his democrap cohorts have ever worked to accomplish is the destruction of the state of California by driving industry and jobs out of the state by any means possible.
Since enviro Nazism wasn't doing the job fast enough they have turned to economic Nazism to hasten it's demise, primarily through insanely high and unjustifiable minimum wage, the accelerated import of illegal aliens and gifting them with taxpayer funded healthcare, food, lodging and schooling and now this insanity which will throw thousands of (I'll shorten the list) hair care professionals out of work.
Bravo Moonbeam, no one in their right mind could have possibly believed one lunatic could cause so much pain and destruction to a once great state!
“Employers are going to scream because making your former employees independent contractors saves the employers tons of money! It means they don’t pay for workers compensation insurance”
When the wc insurance company payroll auditor does the payroll audit (wc premiums are based on payroll) the auditor will use the total contract price of labor and material of the sub to determine the additional premium to be paid by the principal, the business owner hiring the sub, independent contract person or company.
Most attorneys do not advise their contractor clients that they have this exposure so it can come as an unpleasant surprise when they get the additional premium billing for this exposure. Even greater surprise if the IC incurs an occupational injury while doing the contracted work and files a wc claim against the principal. The claim cost will then be added to the Experience Modification calculation of premium, possibly resulting in premium surcharge for the next three years.
In today’s workplace environment, an irate haircut patron just might have his weapon with him and shoot the barber for the lousy haircut thus creating a workplace injury and wc claim (unlimited medical, loss of earnings, widow and children death benefits, funeral expense) against the shop owner.
No US state wants to bear the cost of workplace injury claims being made by disabled workers, widows and orphans is why this
is in the wc state law of each state, otherwise the state taxpayers would have to pick up the claim cost.
Lawyers make more money on retrospective events than on prospective advice is probably why they do not advise their clients of this exposure or the alternative is that they are ignorant of their state WC law.