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Have you heard of California's AB5? Essentially destroyed the freelancer/contractor market in CA.
by YuriNiyazov 4y ago
Have you heard of California's AB5? Essentially destroyed the freelancer/contractor market in CA.
- dragonwriter 4y ago> Have you heard of California’s AB5? Essentially destroyed the freelancer/contractor market in CA. AB5 (2019) added a bunch of exceptions allowing contractor designations to rules restricting designation of employees as “contractors” resulting from the California Supreme Court’s application of pre-existing law; either the court decision “destroyed the freelance/contractor market” or nothing did, since what AB5 did was loosen the rules.
- mixmastamyk 4y agoSoftware contractors were not included in the exceptions to my knowledge. To address your sibling comment, you will have trouble if the contractors work is directed, which it often is. To address the grand parent, yes I'm aware of it and why I made the post. The work continues in spite of the law. Another wrinkle is Uncle Sam being the plaintiff. Should ask on Lawyer News I guess. (Am limited to a few comments per hour, so need to conserve them.)
- dragonwriter 4y ago> Software contractors were not included in the exceptions to my knowledge. Software contractors don’t have their own special exception, but would often fall within the Business Service Provider exception; some software contractoes (web designers hired through referral agencies, specifically) would fall into the exceptions for certain workers hired through referral agencies. And, of course, because of the Supremacy Clause, direct relations with the federal government are not governed by state labor laws, in any case.
- SamReidHughes 4y agoNot true, the Dynamex ruling was only applicable to wage orders by the Industrial Welfare Commission, and AB5 expanded the applicability to other aspects of labor law.
- OkayPhysicist 4y agoNo it didn't. The contractor market is very much alive and well in CA, and AB5 was an obvious clarification targeting contractor-in-name-only type gigs. Of course the main target of the bill, Uber/Lyft drivers ended up getting shafted after the ignorant public passed prop 22, but a software contractor/freelancer would have had no issues passing the contractor vs. employee test specified in AB5.
- SamReidHughes 4y agoThat's not really true; AB 2257, passed later, fixed some important issues with section 2776.