Governor Phil Murphy signed a legislative package combatting worker misclassification and exploitation. The bills will crack down on employee misclassification in businesses by allowing stop-work orders against employers violating state wage, benefit, and tax law; providing assessment of penalties for violations in connection with misclassification of employees; and requiring employers to post a notice for their employees regarding employee misclassification, among others. Read about this sweeping legislation and mitigate your risks.
Yesterday in the San Diego Union Tribune, Attorney Dan Eaton points out how CA AB5 stakeholders, both affected employers and independent contractors, must be included in legislative dialogue.
Click here to see three key ways to fix the legislation which is disrupting the work force throughout the United States.
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.
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.
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.
Joyce Rosenberg, Associated Press, reports in the Chicago Daily Law Bulletin: A California law that makes it harder for companies to treat workers as independent contractors takes effect next week, forcing small businesses in and outside the state to rethink their staffing.
The law puts tough restrictions on who can be independent contractors or freelancers rather than employees. Supporters say it addresses inequities created by the growth of the gig economy, including the employment practices of ride-sharing companies that use contractors.
Company owners with independent contractors must now decide whether to hire them as employees or look for help in other states. An alternative: asking these workers to start their own businesses.
Although the law affects companies of all sizes and out-of-state businesses that use California contractors, it likely will have a greater impact on the many small businesses that have hired independent contractors because of limited staffing budgets. Read the whole article here.
Michael Watson writes workers beware major labor unions bearing “gifts.” California has given us yet another case study in union “gifts” to workers backfiring, passing a union-favor law which led to Vox Media canceling its contracts with freelance contributors in the state to comply and putting hundreds of writers out of work just in time for Christmas. Read about these Grinch actions here.