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I was the CEO/cofounder of Bloc, an online coding bootcamp. Our mentors started out as tutors but we eventually converted them all to employees and learned a lo
by choxi 7y ago
I was the CEO/cofounder of Bloc, an online coding bootcamp. Our mentors started out as tutors but we eventually converted them all to employees and learned a lot about California labor law in the process.
What was frustrating about the labor laws is that there were never any clear rules about what constitutes a contractor versus employee, there are just some "smell tests" and guidelines but it's ultimately deferred to the judgement of California's labor bureau.
> a person providing labor or services for remuneration shall be considered an employee rather than an independent contractor unless the hiring entity demonstrates that the person is free from the control and direction of the hiring entity in connection with the performance of the work, the person performs work that is outside the usual course of the hiring entity’s business, and the person is customarily engaged in an independently established trade, occupation or business
The new laws being proposed here don't look much different from the guidelines that already exist, they're just more black and white leave less room for interpretation. I think the most troublesome one for startups is "the person performs work that is outside the usual course of the hiring entity’s business", but it shouldn't affect general contractors unless they're working for a general contracting company.
- ensignavenger 7y agoHow does the law define the hiring entities business? A general contractor is in the business of building things. Uber is in the business of transportation. The GC contracts out the actual building tasks to sub contractors. Uber contracts out the actual driving to sub contractors.