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.