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> Taking the example, what AB25 actually says is that a journalist on a 1099 has a limit of 35 articles per year per pub. To exceed that limit, the journalist d

> Taking the example, what AB25 actually says is that a journalist on a 1099 has a limit of 35 articles per year per pub. To exceed that limit, the journalist does not have to be fulltime. They merely have to be paid on a W2. That's the point here. They cease to become freelancers, which means the company has to pay for many types insurances, benefits and the other half of social security tax. This usually adds about 20-30% of additional overhead on each worker. That might sound like no big deal and even favorable to the freelancer but that's not what the outcome will be. Businesses don't just reach into their pockets and start paying for these things. They either pass down the 20-30% in losses to the freelancers or just hire full time employees to replace the freelancers. See for example the effects this type of heavy-handed regulation has had on other "freelancer"-dependent industries: https://www.sfexaminer.com/news/new-rules-for-contractors-have-unexpected-consequences-for-the-citys-strip-clubs/ https://www.sfexaminer.com/news/new-rules-for-contractors-ha... In other words what the author has said is true: it becomes difficult or near impossible to make a freelance income from CA businesses.

x0x0 7y ago
Nope, the claim is this: > So I'd either have to stop writing for The Week by the end of February or dramatically slow my pace of work to less than one column weekly If the company chooses to only use 1099, that's their choice. But they have a W2 option out there. > * the company has to pay for many types insurances, benefits and the other half of social security tax. This usually adds about 20-30% of additional overhead on each worker.* That's pure nonsense. If you're not providing health insurance -- which is not required under a threshold of hours per week, and which a freelancer like this is in no danger of hitting -- social security plus medicare are about 8% for the employer. On minimum wages of $12/hour in california, you're paying nothing like 30%. The employer also wouldn't be paying for office space, computers, internet, IT, or treating the employee decently (food, drinks, etc), all of which is rolled up in the typical 25% that employers use as a rule of thumb for overhead. The actual required overhead is minimal. Now if the employer doesn't want to pay a fully loaded W2 cost of probably under $13.50/hour for CA, that's their choice. But they don't need nonsensical numbers made up to support them.

x0x0 7y ago

Nope, the claim is this: > So I'd either have to stop writing for The Week by the end of February or dramatically slow my pace of work to less than one column weekly If the company chooses to only use 1099, that's their choice. But they have a W2 option out there. > * the company has to pay for many types insurances, benefits and the other half of social security tax. This usually adds about 20-30% of additional overhead on each worker.* That's pure nonsense. If you're not providing health insurance -- which is not required under a threshold of hours per week, and which a freelancer like this is in no danger of hitting -- social security plus medicare are about 8% for the employer. On minimum wages of $12/hour in california, you're paying nothing like 30%. The employer also wouldn't be paying for office space, computers, internet, IT, or treating the employee decently (food, drinks, etc), all of which is rolled up in the typical 25% that employers use as a rule of thumb for overhead. The actual required overhead is minimal. Now if the employer doesn't want to pay a fully loaded W2 cost of probably under $13.50/hour for CA, that's their choice. But they don't need nonsensical numbers made up to support them.