IC Law News

Exposing legal threats to Independent Contracting

Are you an independent contractor? Do you use independent contractors? Do you have side gigs? Laws could ruin your work and life styles. It is already happening in California.

THIS SITE STARTED 2020-02-26. MORE COMING. Attention diverted to COVID-19 issues. News database at the News menu item.

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Recommended from the database: AB 5: The Aftermath of California’s Experiment to Eliminate Independent Contractors Offers a Cautionary Tale for Other States. An excellent, balanced overview.

This site focuses on California at the moment because California is an example of the disaster that can come to your state and to the nation. Go to twitter and search on #AB5.

AB5 — Assembly Bill 5 — in California took effect January 1, 2020. This law was backed by unions and sponsored by Lorena S. Gonzalez (D). It was passed along party lines: Democrats yes, Republicans No.

This piece of legislation has had drastic, damaging effects on all kinds of workers. Here are just a few: writers, musicians, referees for school events, translators, magicians, mental health workers, forensic nurses.

AB5 in California exempts a few certain occupations — such as lawyers, accountants — but affects hundreds of others, such as seasonal Santa Clauses, golf caddies, translators.

The bottom line: AB5 makes it nearly impossible to be an independent contractor or to engage an independent contractor.

See the News page for a compilation of news reports about laws affecting independent contractors.

Opposition

Various groups are fighting this type of legislation. This site is to help collect various resources, especially in WA State. Resources in other states are also included when available.

FightForFreelancers.com is tremendous site with a wealth of information. Read the home page for a fast understanding of the issues. Other groups are listed below.

wdt_ID State Focus Name
State Focus Name

Real CA Legislation

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB5

California’s Employment Development Department has a page about AB5 – Employment Status. Note this wording: “AB 5 does not change how out-of-state workers are classified.” This encourages CA and non-CA businesses to engage contractors outside of CA with the result of sending money away from CA. Not a terribly bright state economic strategy. This also means independent contractors — and those who have made freelancing a career — will suffer from lack of business and cash flow.

AB5 Personal Stories compiles negative effects of AB5.

Proposed WA Legislation

https://legiscan.com/WA/sponsors/HB1515/2019

Per the Washington State Legilative Information Center on 2020-03-10, HB1515 and the substitute SHB1515 are dead completely, never getting out of the Rules Committee. To revive the bill contents a new bill would need to be reintroduced and be assigned a new number. The earliest a reintroduction could happen would be in January 2021. The primary sponsor of HB1515 was Representative Marcus Riccelli (D) (3rd Legislative District: Spokane). There were many other sponsors.

The Washington State Legislative Information Center is very helpful. The number: 360 786 7573.

Prosposed Federal Legislation

Similar legislation has been proposed in Congress. Read this short, excellent overview about the Federal Pro Act.