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AB5 has less to do with California dumping on small business, and more to do with bumping organized labor numbers. Labor, and I need to say I'm for generally fo
by nostradamus 4y ago
AB5 has less to do with California dumping on small business, and more to do with bumping organized labor numbers. Labor, and I need to say I'm for generally for organized labor except with AB5. In this case, Uber drivers and other contractors were seen as a ripe target since total labor numbers are in a death spiral. So make these 1099 workers become W2 employees, and eligible to join a union. In practice nothing of the sort has happened, it's just killed thousands of careers, or folks have left CA.
The bigger court case was today in the 9th U.S. Circuit Court of Appeals, which effectively adjudicated that carveouts to AB5 were arbitrarily made, which they were. Notably two of the three judges were appointed or blue-slipped by Democrats.
It's amazing given the havoc that AB5 has caused that this ghastly law hasn't been tossed, together with the CA Supreme Court Dynamex decision, in entirety. When crafting AB5, they were careful to exempt key constituencies and power brokers. If a federal court invalidates the carveouts, it's game over for AB5. Note that USDOL is trying to implement AB5 on a national scale with their proposed rule.
- s1artibartfast 4y agoI think that is an insightful and balanced take. May I ask where you get your information? I like to follow important court cases and usually read the Supreme Court rulings, but don't have a good resource for state and District law. More to the topic, I think the law on the scope of contractors is overly vauge, and this hurts both individuals and business. Both benefit from clear legislation and the topic of contractor definition has mostly been hashed out in case law precedent.