Dramatic loss of income in California leaves independent contractors and small business owners nationwide fearful of similar approach to “worker misclassification” problem.
Insider NJ reported on February 3, 2020, California—When California’s AB5 went into effect on January 1, supporters promised the law would result in the reclassification of numerous independent contractors to full- and part-time workers with benefits. Instead, the law’s first month has proved a catastrophe for scores of independent contractors who have lost income, longtime clients and, in some cases, their entire livelihoods overnight. Despite the devastating effects of the law in California, lawmakers in other states are considering enacting similar legislation as Congress plans to vote on a federal version, referred to as the PRO Act (HR2474), this week. Read entire article.