Re: Independent contractors and freelancers are employees in California?

Subject: Re: Independent contractors and freelancers are employees in California?
From: Lauren <lauren -at- writeco -dot- net>
To: techwr-l -at- lists -dot- techwr-l -dot- com
Date: Mon, 16 Sep 2019 19:52:17 -0700

The extra push for AB5 came from an interest to regulate rideshare. It is possible that Dynamex opened a door but it is more likely than not, that the movement to regulate the gig-economy was waiting for a legal precedent to use as a catalyst.

Some unions are the drivers behind this legislation, as they have been on each side of arguments that rideshare drivers should be employees. Unions have been going at each other to get at drivers for many years. Recent talks are dividing the unions.

https://www.vox.com/2019/7/1/20677095/uber-lyft-labor-unions-ab5-california

Timing of this legislation has to do with Newsom being governor. Newsom has focused his support for AB5 on what he perceives are the needs of, specifically, "rideshare drivers, labor unions, and tech companies."

https://www.sacbee.com/opinion/article234624897.html

Uber, Lyft, and DoorDash are working together to create an employment category that sits between contractors and employees and put it on the 2020 ballot. If they succeed, then other companies will likely make use of the new employment class.

https://laist.com/2019/09/11/ab5-bill-california-gig-economy.php

This will matter to employees that include tech employees who are classified as independent contractors but who are not really independent under the ABC test.

https://www.fisherphillips.com/resources-newsletters-article-new-abc-test-for-independent-contractors-sends

Court decisions do not cause legislation. Legislation comes from public interest. Without unions lobbying for AB5 and using the gig-economy in its arguments, the legislature might not have got involved with employment classification. If Newsom was not governor, this bill may not have been written.


On 9/14/2019 10:05 AM, Robert Lauriston wrote:

The law was changed in April of last year by the California Supreme
Court. There was widespread support for clarifying and codifying the
Dynamex decision, so a bill along the lines of AB5 would have passed
even if ride-sharing apps had not been invented.

"AB 5 was never added to the California Chamber of Commerceâs annual
list of 'job killer' bills, a designation that often dooms
legislation. That is because without a bill, the court decision would
remain in force, affecting a far larger swath of companies than AB 5,
and inviting more litigation."

https://www.latimes.com/business/story/2019-08-30/ab5-dynamex-independent-contractors-bill


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References:
Independent contractors and freelancers are employees in California?: From: Michael Wyland
Re: Independent contractors and freelancers are employees in California?: From: Lauren
Re: Independent contractors and freelancers are employees in California?: From: Lauren
Re: Independent contractors and freelancers are employees in California?: From: Lauren

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