California Assembly votes to tighten rules on contractors

Associated Press ^ | May 30, 2019 | Andrew Oxford

[Olog-hai]

California residents working for companies like Lyft and Uber would get the rights of employees entitled to a minimum wage and workers compensation under a law the state Assembly passed on Wednesday.

The sweeping bill, which now goes to the Senate, carries new standards defining whether workers are employees or independent contractors, upending how workers are treated in industries from trucking to the burgeoning gig economy.

Under those standards, for example, workers could only be classified as independent contractors if they are free from the control or direction of an employer and they do work outside a company’s usual course of business.

The measure, Assembly Bill 5, includes exemptions for some sectors, such as physicians and insurance agents.

Democrats and major labor unions backing the bill contend it will protect workers’ rights. …

[headstamp 2]

Illegal alien contractors unaffected of course.

[jcon40]

Makes one wonder which legislators got kick backs from traditional cab companies.

[Enterprise]

"Makes one wonder which legislators got kick backs from traditional cab companies."

Maybe Uber and Lyft haven't made enough campaign donations to Democrats.

[Mr. Jeeves]

Ho hum - another No Right to Work Without Union Approval bill...

[Wuli]

I employed consultants in my professional life. They are no different than contractors. I could not strictly control their hours, and doing so treated them as “employees” as far as the IRS was concerned and made us subject to paying the employer’s share of social security, instead of just paying them their contracted hourly rate.

[Persevero]

Trust me, the cab companies have no organization or lobbyist and aren’t kicking anything to anyone.

[Rusty0604]

Exactly.

[Kickass Conservative]

The CA Confederacy strikes again.

I wonder if this violates any Federal Laws? Aren’t there Federal IRS Guidelines regarding Contracted (1099) Employees?

[lewislynn]

Aren’t there Federal IRS Guidelines regarding Contracted (1099) Employees?

Yea, almost word for word what is described in the article.

[ridesthemiles]

Try dealing with a claim for “Workmen’s Comp” when it didn’t occur ON YOUR EMPLOYER PROPERTY.

I was a self-employed bookkeeper/accounting person in Calif for over 30 years. I picked up & delivered data at clients. I drove all over the San Fernando Valley & other places. IF I stepped wrong & turned an ankle, WHOM would I file a claim against?

This isn’t a good thing for anyone & will be very costly for insurance premiums to employers.

[aquila48]

The Rats doing what they do best, ruining another business sector.

[trebb]

Wonder if this is camouflage to hinder wall contractors...

[catnipman]

Lyft and Ubern should simply pull out of california ... my understanding is that they’re still losing money anyway, so they’d lose less money with less business; besides, they couldn’t tolerate the loses incurred if they’re forced to treat their contractors as employees, paying them wages, buying workers comp insurance, medical insurance and all the rest ...

[hanamizu]

Lyft and Uber should simply pull out of california ...

---

I’ve used Uber maybe four or five times when visiting California. We don’t have either Lyft or Uber where I live. I was pretty impressed by how smoothly it operated. But my granddaughter, who lives in the San Diego area uses Uber all of the time for all kinds of things—trips to and from the airport, an evening at clubs, even to getting take-away dinners delivered. I don’t think Cal politicians would be ready for the kind of backlash if the two companies were forced out of the state.

[Vaduz]

Democrats keep telling us we don’t have any illegal aliens.

[Truthoverpower]

What contractors?
-
I’m a real contractor - electrical

What the hell does driving a car have to do with contracting?

Typical California bull crap

[catnipman]

” I don’t think Cal politicians would be ready for the kind of backlash if the two companies were forced out of the state.”

my thinking exactly when i suggested the pullout!

[Starboard]

Aren’t there Federal IRS Guidelines regarding Contracted (1099) Employees?

***********

If so, they are only enforced in Red states. Blue states are always exempt.

[HotHunt]

Politicians invariably respond to crises, that in most cases they themselves have created, by spawning new government programs, laws and regulations.

These, in turn, generate more havoc and poverty, which inspires the politicians to create more programs..... and the downward spiral repeats itself until all of the productive sectors of the economy collapse under the collective weight of taxes and other burdens imposed in the name of fairness, equality, redistribution and do-goodism.

This is exactly where California is nowadays. And it is also exactly what Ayn Rand wrote about in Atlas Shrugged, when she talks of these relentless wealth redistributionists and their "fairness" programs for the workers.

They are disparaged as the "looters democRATS and their laws."