California is cracking down on the gig economy

[Recursion]

https://www.vox.com/policy-and-politics/2019/5/30/18642535/california-ab5-misclassify-employees-contractors

California just took a major step in rewriting the rules of the gig economy.

The state Assembly passed a bill Wednesday that would make it harder for companies to label workers as independent contractors instead of employees, a common practice that has allowed businesses to skirt state and federal labor laws. The bill will now go to the state Senate.

Hundreds of thousands of independent contractors in California, ranging from Uber and Amazon drivers to manicurists and exotic dancers, would likely become employees under the bill.

That small status change is huge. These workers would suddenly get labor protections and benefits that all employees get, such as unemployment insurance, health care subsidies, paid parental leave, overtime pay, workers’ compensation, and a guaranteed $12 minimum hourly wage. It also means companies are fuming about the added cost.

Interestingly, actual cab drivers will not get these protections under this law.

[Liberty Belle]

1. This is a horrible bill for freelance writers & photographers - please help us get an exception.

I was a named plaintiff in a class action suit to protect freelancers' rights that went all the way to the Supreme Court and cost the publishing industry $18 million for stealing an reselling freelancers' copyrighted works. When I found out my 350 articles had been stolen and resold, the publisher wanted me to sign an all-rights contract for no money, so I sued. This bill would destroy our victory and put us back at the mercy of greedy publishers.

If we are forced to be employees every time we sell an article to a newspaper, as this bill would mandate (since writing/photography is part of their core business and by definition can no longer be conisidered independent contractor work for newspapers and magazines) the publisher would own the rights to our works since the law gives employers ownership rights; if you are a freelancer the law is that you own your copyrights unless you choose to sign them away.

So they could pay you a very low wage and own all rights, preventing writers/photographers from reselling their works elsewhere. I have in the past resold works for over a thousand dollars to natiional magazines that I was originally paid maybe $100 for with a local newspaper for, say, a home/garden remodel story or a travel story.

Freelancers, if made to be employees, would no longer be able to write off costs such as car, mileage, travel, home office, computer equipment, office supplies, cameras etc. It would be impossible for most to earn a living anymore.

This also hurts small newspapers who will be forced to use very few writers since you can't afford to make someone an employee if they do only the occasional article or photo due to having to pay workman's compensation insurance etc.

I also run a nonprofit news outlet now, and this could be a death knell. Unlike for-profit publishers we can't make money selling lots of ads or political advertisements, and as online news we are prohibited from running paid public notices as small print publishers can do. Yet we would have to make anyone who writes even a single article or sells a single photo an employee, the way this bill is worded.

I support portions of it, as some employers have taken advantage of people like Uber drivers. But creative people must be able to keep control over our own works.

Please folks, call/write legislators in the State Senate where this is headed next and ask them to oppose this unless freelance writers, photographers, videographers and other creative independent contractors are provided protection and the rights NOT to be employees but rather to retain control over our own works and the ability to write off our expenses to keep our businesses viable.

[fescuerescue]

3. yea this is horrible for IT consultants too

I do security consulting work I do really really well at it.

This would force me to attach to some larger fortune 500 consulting company become a W2'er once again get wrapped into that rat-race at 1/3 of what I get now. I left the W2 world some time ago and I never want it again.

You also bring up a very good point about intellectual property which I generate alot of. My work would just become the property of whoever gets the privilege of under paying me and collecting all my former margin.

[customerserviceguy]

4. Let's face it

The reason there is a "gig economy" is because it works, not only for the people buying the services, but for the people providing them. No, it's not your father's labor market, but as we move away from manufacturing (thanks, China!) the work environment must necessarily change.

[fescuerescue]

2. Glad I don't work in California

This would wreak my business. I would literally relocate.

I don't employee contractors. I am a contractor and this would eliminate my ability to write off expenses.

Sometimes my customers offer to allow me to come on as W2, 1099 or corp to corp. W2 is usually about 1/2 of my regular rate and offer some filmsy benefits. That's only for longer gigs. For shorter ones, they would bypass small independents and just go to the big consulting firms which overwork and underpay their folks.

ugh.

[roamer65]

5. California is fast becoming an independent nation.

I expect CA soon to invalidate the tariffs on Mexican goods.