This Labor Day, Ask Why States Like California Restrict Freelance Work

The Federalist ^ | September 01, 2025 | Jennifer Oliver O'Connell

[E. Pluribus Unum]

Six Labor Days later, Assembly Bill 5 remains an adversarial law that handcuffs independent professionals’ ability to work as they choose.

This Labor Day marks nearly six years since Assembly Bill 5 was signed into law by California Gov. Gavin Newsom, upending the lives of freelancers, independent professionals, contractors, and small business owners across the state. What happened in California is spreading to other states like New Jersey. Policymakers should watch out that anti-“gig workers” laws and regulations, pushed by labor unions, don’t force independent contracting out of their states.

Five years after taking effect, Assembly Bill 5 (AB 5) remains an adversarial law that handcuffs independent professionals’ ability to work as they choose. It is a bane to small businesses and a drain on California’s economy. The unions’ target was the gig economy (e.g., Uber and Lyft) and the trucking industry. However, this neutron-bomb of a law affected more than 600 professions, according to its critics. It disrupted or displaced the careers of between 600,000 and 3.5 million self-employed workers, independent contractors, and entrepreneurs overnight. This included journalists and writers, musicians, interpreters, nurse practitioners, and tutors — all professions where skill level, additional training, and often certifications are built over time and meticulously maintained.

The unexpected pushback against AB 5’s broad brush forced the legislature to expand the law’s exemptions to include roughly 100 professions in AB 2257, which was instituted a year later. In 2022, a majority of voters passed Proposition 22, which allowed app-based drivers and delivery services to remain independent contractors. However, Proposition 22 did not solve the issues created by AB 5.

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TOPICS: Business/Economy; Politics/Elections
KEYWORDS: ab5; california; labor

[faithhopecharity]

peventing Americans from freely performing legitimate, useful, productive work
means,
more work for the illegals the DNC political hacks love to import
and
more Americans reduced to welfare and thus, dependency on the state (taxpayers) for their basic sustinence

welfare recipients are quite easily controlled (including at the ballot box)

it is all consistent

[BenLurkin]

Unions and Democrats plus crime and corruption go hand in hand in hand.

[Carry_Okie]

Organized labor runs this State, second only to the real estate business.

[Carry_Okie]

it is all consistent

I call it, "indentured constituency."

[chaosagent]

Just wait until the politician’s wives find out that their favorite nail/hair salon had to close down because of this.

Most nail techs/stylists are independent contractors to the shop owner.

Shops are already closing down because they can’t afford to pay techs/stylists by the hour.

[gibsonguy]

Union dues are a direct pipeline to the rats. No Union no money for the rats.

[eyeamok]

with 3 million plus gainfully employed people NOT paying into Workers Comp, the system might collapse from the massive FRAUD in Workers Comp, they need that money...

[faithhopecharity]

Indentured constituency,.. indeed. That is central to the DNC control-America plan.

and a fine turn of a phrase, too

thanks

[aimhigh]

The majority of small business owners and self employed are Republican. That is why Democrats want to eliminate them.

[Carry_Okie]

and a fine turn of a phrase, too

Thank you. Came up with that one many years ago.