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$20M Enforcement vs Large Gig Economy Companies

By | Advice, Business, Human Resources, Independent Contractor

The Stanford Daily reports California Governor Gavin Newsom announced his intention to budget more than $20 million to enforcement of Assembly Bill 5 (AB 5), known informally as the “gig-economy bill.” It most notably targets Bay Area tech giants like Uber and Lyft, requiring them to give their workers’ benefits that those employees would usually receive. AB 5 was signed into law in September and took effect on Jan. 1. See more details.

Not Just CA Contractor Issues

By | Advice, class action lawsuit, Employment, Freelancer, Independent Contractor, Misclassification

Contractor issues across the US prompted the IRS Three-Factor Test: behavioral control, financial control, and relationship control. Carrie Hoffman of Foley & Lardner LLP shares insight: Regardless of the test used (DOL or IRS), the key is to look at the entire relationship and make a decision supported by the facts of the relationship versus the desires of the parties involved. Read more here.

Independent Contractor Laws Stayed, TROs Filed

By | Business, Human Resources, Independent Contractor

January 7, Lilah Sutphen reported: as expected, two new California laws relating to arbitration and independent contractor status that were set to take effect on January 1, 2020 were promptly challenged in court as unconstitutional. District courts have already issued temporary restraining orders blocking the laws from taking full-effect immediately.  Continue reading more details in her post which summarizes each law, the legal challenges made, and the current status of the law.

Jobs Killed, Employers Forced to Comply in CA

By | Freelancer, Human Resources, Independent Contractor, Legal Services, Misclassification

Forbes reported last week regarding California’s AB5 legislation going into effect: With some exceptions, the law takes aim at the new gig economy and independent contractors, forcing businesses to choose between hiring contractors as employees or laying them off.

A week before Christmas, Vox Media’s SB Nation, a sports website, sent notice to some 200 of its California-based freelancers that they would no longer be allowed to be paid for their pieces—the new law stipulates that any freelance writers who contribute more than 35 pieces a year must be employees. So SB Nation is ditching its independent contractors in California.

An even more consequential battle over the law is taking place in the courts, where a federal judge issued a temporary restraining order on behalf of the California Trucking Association and its 70,000 independent truckers. The judge is considering a permanent injunction on the basis that the wide-ranging California labor law violates federal law as it pertains to the trucking industry, much of which engages in interstate commerce. To continue reading, click here.