AB 5 Aftermath: What true leadership looks like

Guest Column Guest Column 3 Comments

Share

Guest Commentary
by Hon. Laura Koval, Vice Mayor, City of Santee

True Leaders understand the importance of admitting to mistakes. With this strength in your toolkit, you earn respect and trust, thus promoting a safe place for innovative thinking, initiative and a strong entrepreneurial culture.

Instead of doubling down on AB 5 (a colossal mistake in my opinion), or writing more bills to carve out niches for specific groups impacted, the architects and defenders of this bill should repeal it. 

More information below:

Several lawsuits have been filed to challenge #AB5’s terms and the California legislature has scrambled to address many of the problems. As of the bill introduction deadline, no fewer than 30 bills have been proposed, as follows:

Assembly Bills:

AB 1850 (Gonzalez) – a placeholder bill designed by the author of AB 5 as a method to address all necessary changes, including modifications for freelance journalists and photographers.

AB 1925 (Obernolte) – creates a small business exemption to the ABC test for businesses with fewer than 100 employees and with less than fifteen million in revenues on average over the last three years.

AB 1928 (Kiley) – would serve to repeal the ABC test and replace it with the economic realities test established by the California Supreme Court in G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 34.

AB 2457 (Melendez) – exempts individuals who are licensed pharmacists.

AB 2458 (Melendez) – exempts individuals working as physical therapists.

AB 2465 (Gonzalez) – modifies exemptions for barbers, estheticians, electrologists, manicurists, and cosmetologists.

AB 2489 (Choi) – prohibits franchisees from being deemed employees of a franchisor.

AB 2497 (Bigelow) – modifies exemption for transportation network companies.

AB 2572 (Dahle) – exempts timber operators, geologists, geophysicists, land surveyors and professional foresters.

AB 2793 (Mathis) – exempts licensed marriage and family therapists.

AB 2794 (Mathis) – exempts health facilities which contract with companies that employ health care providers who provide services to patients at those facilities.

AB 2796 (Fong) – makes permanent the exemption created for newspaper carriers.

AB 2823 (Waldron) – exempts land surveyors, landscape architects, geologists, geophysicists and construction managers or planners.

AB 2979 (Voepel) – exempts court interpreters and translators.

AB 3136 (Voepel) – exempts certified shorthand reporters.

AB 3185 (Lackey) – exempts referees and umpires for independent youth sports organizations.

AB 3281 (Brough) – modifies the business-to-business exemption.

ACA 19 (Kiley) – requires determination of independent contractor status based upon the Borello test by amendment of the California constitution.

Senate Bills:

SB 806 (Grove) – seeks to modify the ABC test into a more flexible version.

SB 867 (Bates) – makes permanent the exemption created for newspaper carriers.

SB 868 (Bates) – exempts freelance journalists.

SB 875 (Grove) – exempts court interpreters and translators.

SB 881 (Jones) – exempts musicians.

SB 963 (Morrell) – exempts referees and umpires for independent youth sports organizations.

SB 965 (Nielsen) – exempts health facilities which contract with companies that employ health care providers who provide services to patients at those facilities.

SB 966 (Nielsen) – exempts licensed pharmacists.

SB 967 (Borgeas) – prohibits franchisees from being deemed employees of a franchisor.

SB 975 (Dahle) – exempts timber operators, geologists, geophysicists, engineers, land surveyors, professional foresters and certain persons in the pest control business.

SB 990 (Moorlach) – exempts transportation network companies.

SB 1039 (Galgiani) – the most interesting proposal declares the intent of the Legislature to develop a modern policy framework that facilitates independent work for those who voluntarily choose it by creating a third classification of workers.

The above proposals make clear that AB 5 is having a substantial impact on the way we do business in California. The final impact, however, may not be certain for several years as the legislature and, ultimately, Governor Newsom, strive to confront the many questions raised by AB 5.

Source: https://www.ecjlaw.com/ecj-blog/california-legislature-scrambles-to-amend-ab-5 March 5, 2020 “California Legislature Scrambles to Amend AB 5, The Independent Contractor Disaster”

Share

Comments 3

  1. Correct me if I am wrong, but there is already a “business to business” exemption. Wouldn’t anyone’s particular problem with AB 5 be solved if said person simply got a business license?

  2. @HQ If it were that simple, it would be a more palatable form of tyranny but it’s not that simple.

    I feel REALLY bad for the budding entrepreneurs in California. #RepealAB5

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.