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Meh, as a freelance software engineer who sometimes works for California employers, I'll be happy to classify myself as an employee and decline health insurance
by kerkeslager 7y ago
Meh, as a freelance software engineer who sometimes works for California employers, I'll be happy to classify myself as an employee and decline health insurance in exchange for higher pay.
While the law could have been written more simply, I think your concern for my well-being is misplaced.
- woah 7y agoSure, maybe you can replicate an arrangement you had before, but due to the multiple new layers of bureaucracy you’re going to get paid less. Like I said, they knew this was an issue which is why 90% of the law is carve-outs. Unfortunately software engineers (and many other professions, I’m sure) have slipped through the cracks and now will be subject to the harms that they were trying to avoid for doctors, accountants, fishermen, etc etc etc
- rsweeney21 7y agoIt's not that simple. For a company, a contractor is much different than an employee, and it is much more regulated and costly to terminate an employee. For example, if you terminate an employee you have to have proper documentation to justify the termination. Even then, you are still vulnerable to a wrongful termination lawsuit...unless you offer them severance in exchange for signing away the right to sue. You are also on the hook for unemployment.
- ilikehurdles 7y agoWouldn't a way to "work around" this be to incorporate or form a sole proprietorship for your own services?
- kerkeslager 7y agoIncidentally, you'd be crazy not to do this, as having a business, even a sole proprietorship, makes taxes a lot easier.
- j0ba 7y agoNot in California, with mandatory payroll tax even for single owner corps.