This California Law Is Ripping Away American Dreams. The Left Wants to Take It Nationwide

[Northeast Agent]

This California Law Is Ripping Away American Dreams. The Left Wants to Take It Nationwide. - AMAC - The Association of Mature American Citizens

Uncertain of AB5’s new terms, companies now view independent contractors as a risk.

Is this affecting any CA insurance agents?

 

[mickeyma]

No. Insurance agents are not included in "gig" workers like Uber.

 

[toolbelt]

I think its to protect against companies trying to avoid basic labor protections by shifting away from employees to reclassifying them as independent contractors. In some cases it works as a disadvantage but in most cases it helps. If anything, this will actually create jobs in the long run.

 

[mickeyma]

It was introduced because many companies (like insurance companies & law firms) made their employees independent contractors so they would not have to pay for workers comp insurance, unemployment taxes and state disability taxes (California has state disability taxes).

Also, these companies do not have to worry about minimum wage and benefits.

I knew a very successful law firm owner who had his 12 legal assistants as independent contractors even though they worked in his office.

 

[DHK]

This is why I'm a member of NAIFA. NAIFA helped to preserve our independence and flexibility when they were passing this whole "gig economy" legislation garbage.

NAIFA-CA Home

 

[suranceman]

I think its to protect against companies trying to avoid basic labor protections by shifting away from employees to reclassifying them as independent contractors. In some cases it works as a disadvantage but in most cases it helps. If anything, this will actually create jobs in the long run.

Is there any scenario where you feel more government isn't the answer?

And there are already plenty of rules around 1099 vs w2. Employers who mis-classify workers as w2 know the risk they're taking. Creating more rules won't stop them. They willing violate them.

All this law does is target the gig workers. It will not help them and by no means will this create more jobs. It will simply eliminate gig opportunities.

Choice is all the protection gig workers need. Don't want a 1099 position? Don't sign up for one. Go find a w2 job that has benefits etc.

You don't need laws to do this.

 

[toolbelt]

Go find a w2 job that has benefits etc.

So what if you had a W2 job and were suddenly reclassified as a 1099 and therefore all benefits would be cut, even tho you'll be performing the exact same job?

 

[Life Hawk]

Choice is all the protection gig workers need. Don't want a 1099 position? Don't sign up for one. Go find a w2 job that has benefits etc.

You don't need laws to do this.

I have that member on ignore.

What you said is gold!

 

[suranceman]

So what if you had a W2 job and were suddenly reclassified as a 1099 and therefore all benefits would be cut, even tho you'll be performing the exact same job?

You are free to choose then.

1. You could choose to report the employer to the state (they love busting employers who violate these rules).
2. You could choose to remain there while you look for another w2 job.
3. You could choose to quit and work a gig of some kind during the transition to another w2 job.
4. You could choose to quit and start your own business.

You don't need government for most things. This is a scenario where that's especially true.

 

[DHK]

So what if you had a W2 job and were suddenly reclassified as a 1099 and therefore all benefits would be cut, even tho you'll be performing the exact same job?

The exact same job wouldn't exist. As a 1099 independent contractor, I would not have a manager, therefore, I choose my hours. I can choose to work harder... or not. I would be free to contract with multiple services and dilute/distribute my time as I chose. I would be free to exploit all the legal loopholes in the tax code as possible to business owners (although the high standard deduction might make that a mute point).

However, most people don't look at their employment situations the way the tax code rewards or punishes them.

After all, "The government comes for the regular people first."


After I read this book, I never looked at regular jobs the same way again:
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