California Threatens $1 Trillion Gig Economy With New Law
Imperfect new rules are nothing to fear for those seeking to do genuine independent work.
Our CEO and Founder, John Ryan takes a closer look.
California, arguably the jurisdiction of technological and social developments that the rest of the world most often looks to for guidance, or at least interesting ideas, has recently passed into law a pretty significant change surrounding independent contract workers.
In essence, Assembly Bill 5 (AB5), seeks to stop the practice of businesses misclassifying those who are by all intents and purposes employees, as independent contractors.
To assist in the process of making these judgments the bill has organised parameters into the ABC test. The test puts the burden of proof on the employer to prove that a worker is an independent contractor by satisfying the following:
(A) the worker is free from the company’s control
(B) the worker performs work that isn’t central to the company’s business and
(C) the worker has an independent business, trade or occupation in that industry.
Objectively observing the law changes, one could effectively argue two positions;
that those seeking to become employees will be relieved to be finally recognised appropriately, or;