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Assembly Bill 5 Unintentionally Takes Aim at California Freelancers

California’s new Assembly Bill 5 law takes effect on the first of January. However, instead of setting a good tone for the new year, for many, AB5 appears to be a tone-deaf effort. Launched by California Assemblywoman Lorena Gonzalez to address gig economy issues that have resulted in unfair treatment of Lyft and Uber drivers, AB5 was designed to protect these workers. “AB5 forbids businesses to use contractors unless the companies can pass a stringent requirement known as the ‘ABC test.’ It’s designed to ensure that all workers are classified as employees unless they perform their work independent of supervision, have an established business doing the same sort of work for multiple customers and are doing work that isn’t part of the company’s core business,” Megan McArdle said via The Washington Post. Companies classifying these workers as “employees” must then set aside taxes, Social Security benefits and other benefits . The new law — designed to protect rideshare drivers — hurts...

Dec 23, 2019