Perfect example of a few employers have screwed things up for many businesses. A few Employers that try to cheat the system by paying only on a 1099 basis when they should have been paying as an employee so that the true independent contractor is now in a tougher situation.
It’s true, there are the abusers of the employment laws who wrongfully paid W3 employees as 1099 contractors. However the state can go after these abusers and have by forcing them to pay back taxes. However making the law more strict doesn’t help combat the abusers. If someone users their own car at sets their own hours, this is an independent contractor status, not an employee status. The state in this case has abused their powers and this needs to be overturned. This was pushed by the unions as to hold us hostage to their demands, just like unions have done for decades. Businesses can still hire independent contractors, but hire them out of state were the law doesn’t apply. Worst yet, this hurts California freelancers the most. As a resident of California, I can tell you these politicians have no interest in helping the people, rather they are looking to empower themselves even more.
You’re completely ignoring the fact that these “independent contractors” are often not setting their own hours, or are an integral part of the business. If you’re writing for a business that produces written publications, you’re not a frigging independent contractor. If you’re doing hair in a hair salon, you’re not an independent contractor. That’s not about the unions (which you’re way off base on) it’s not about the poor freelancers. The majority of freelancers would actually make better money as employees in most places, it’s purely the business owners who save in the current situation. Which, if you own a business, sorry you have to pay taxes for employees. That’s the cost of doing business.
Did you read my reply??? I clearly stated their are the abusers and we should go after them. The new law does not address setting their own hours, it’s always been the case if a business sets hours of a workers, they are most likely employees. So this has always been the law and the new law does not address this since it always has been addressed, rather it forces employee status even on employers who let these IC’s set their own hours. What you are talking about is making enforcement stricter and the law doesn’t do this (I would be for the law if it was about enforcement). I urge you to better understand this law before replying and even read the replies, you may learn something rather than being irrelevant.
“the new law does not address this since it has always been addressed”
It’s been addressed since the Dynamex ruling. Quoted from the new law:
(D) Outside of project completion dates and reasonable business hours, the individual has the ability to set the individual’s own hours.
So, the new law DOES address this. Sorry, maybe you should actually read the law bro? The A B C law is what I’m talking about, and as I understand it the AB5 modifies that law, but the core of it remains the same. Here’s a handy link, feel free to read the law!
This is nothing but a tax-grab by the state. Most of us who freelance can charge as much as the traffic will bear, and work for as many clients as we can. It’s up to us. When one gets pigeon-holed into being an employee, one is limiting one’s income.
These laws aren’t meant to protect anyone – it’s a natural extension of the treatment of Uber and Lyft in order to be more securely under the thumb of the state.
I disagree completely. I worked in the tattoo industry for a number of years and worked for a shop that tried to cheat his employees out of paying their taxes by labelling them independent contractors, despite affording control over their hours worked and the fact that we were working as tattooers in a tattoo shop. I completely the proper forms with the IRS and they designated me an employee, and I was fired for doing this. That’s not an independent contractor relationship, and businesses like that are abusing the employment laws in this country to skirt paying taxes.
Maybe do some more research on the subject before you act like it’s a tax-grab for the state, because your response is ignoring a large swath of people affected by this.
“Most of us who freelance can charge as much as the traffic will bear, and work for as many clients as we can.”
GREAT FOR YOU! Since it sounds like you get to choose your own clients and your own hours, that means you have nothing to worry about and you can still be classified as independent contractor under the new law! As stated in the article:
“The new law allows workers to be classified as independent contractors only if companies don’t have the right to control their work and how it is done. A number of factors go into making that determination, including how closely the worker is supervised _ for example, who sets their hours.
The work being done must not be part of the company’s regular business, and the worker’s occupation must be distinct from the company’s; in other words, a graphic designer cannot be an independent contractor for a graphic design firm.
There are exemptions for professionals like doctors, lawyers, architects and insurance brokers, but they must have the freedom to set their own hours, negotiate their own fees and exercise their own judgment as they do their jobs.
Workers like graphic artists, freelance writers and travel agents can also be exempt if they have similar autonomy. And people who work in barber shops, hair and nail salons and spas can have exemptions, but they have to set their own rates and hours, choose their own clients and be paid directly by the clients.”
However, if you work on a film set in production, you are working for the company yet they pay you as an independent contractor. Instead of doing the proper thing – going to a payroll company and have them be the employer of record – you screw over your crew and issue 1099s only because you do not want to pay the UI, SS, SDI, etc.
These people are working under the direction of a producer. Everyone on set should be considered an employee. The entire film and television industry has been gutted by producers issuing 1099 and now that the coronavirus has halted production completely, none of these workers – including my husband – can collect unemployment unless they will do it based on the $8K or so he earned by those companies that issued W2s.
In addition to the tax issue, this also takes money out of the worker’s compensation system and either places the burden on health insurers, if the IC’s are buying it or worse, on the tax payers if these IC’s aren’t buying health insurance and going to public health providers. At the same time, I also agree with Mike’s comments about being a freelancer providing minimal services to multiple clients. If we had universal health insurance, this wouldn’t be an issue.
It’s not accurate to say this new law is strictly good or bad for employees/contractors. It’s good for some and bad for others. But in general it seems to be bad for business since it makes business more costly and more complicated. It could cause business to leave the State.
As for workers, just make sure you understand what you’re signing up for and getting into. Gig jobs are fine in a lot of ways, decent money and flexibility, but no, you won’t get benefits or retirement/pension/401k, etc. IF it’s still works for you, then do it. If not, don’t. It’s that simple.
The market will decide. If the demand for these gig workers is high and there are people willing to do it – they will. If not than companies/individuals will leave and find a more favorable place to conduct commerce. Government thinking that they can control or change this are correct. The market forces will move and the government will more than likely ignore it because they do not care. Individuals care but if they are abused and can find a more favorable place to do their business – guess what? I don’t understand a government that thinks higher taxes and more burdensome regulations are the answer to ANYTHING. But I digress.
I worked for 20 years in the Insurance Industry as an employee, only to be laid off the second time due to cutbacks. I’ve been an independent contractor for 28 years now and will not take employment with anyone. It is a shame the State has tried to control another facet of business they do not comprehend, under the guise of fairness. This is purely a union motivated Law, to whom the California Politicians are, for the most part, being paid very well.
Perfect example of a few employers have screwed things up for many businesses. A few Employers that try to cheat the system by paying only on a 1099 basis when they should have been paying as an employee so that the true independent contractor is now in a tougher situation.
“Perfect example of how government has screwed things up for many business”
Fixed it for you.
It’s true, there are the abusers of the employment laws who wrongfully paid W3 employees as 1099 contractors. However the state can go after these abusers and have by forcing them to pay back taxes. However making the law more strict doesn’t help combat the abusers. If someone users their own car at sets their own hours, this is an independent contractor status, not an employee status. The state in this case has abused their powers and this needs to be overturned. This was pushed by the unions as to hold us hostage to their demands, just like unions have done for decades. Businesses can still hire independent contractors, but hire them out of state were the law doesn’t apply. Worst yet, this hurts California freelancers the most. As a resident of California, I can tell you these politicians have no interest in helping the people, rather they are looking to empower themselves even more.
You’re completely ignoring the fact that these “independent contractors” are often not setting their own hours, or are an integral part of the business. If you’re writing for a business that produces written publications, you’re not a frigging independent contractor. If you’re doing hair in a hair salon, you’re not an independent contractor. That’s not about the unions (which you’re way off base on) it’s not about the poor freelancers. The majority of freelancers would actually make better money as employees in most places, it’s purely the business owners who save in the current situation. Which, if you own a business, sorry you have to pay taxes for employees. That’s the cost of doing business.
Did you read my reply??? I clearly stated their are the abusers and we should go after them. The new law does not address setting their own hours, it’s always been the case if a business sets hours of a workers, they are most likely employees. So this has always been the law and the new law does not address this since it always has been addressed, rather it forces employee status even on employers who let these IC’s set their own hours. What you are talking about is making enforcement stricter and the law doesn’t do this (I would be for the law if it was about enforcement). I urge you to better understand this law before replying and even read the replies, you may learn something rather than being irrelevant.
“the new law does not address this since it has always been addressed”
It’s been addressed since the Dynamex ruling. Quoted from the new law:
(D) Outside of project completion dates and reasonable business hours, the individual has the ability to set the individual’s own hours.
So, the new law DOES address this. Sorry, maybe you should actually read the law bro? The A B C law is what I’m talking about, and as I understand it the AB5 modifies that law, but the core of it remains the same. Here’s a handy link, feel free to read the law!
leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB5
This is nothing but a tax-grab by the state. Most of us who freelance can charge as much as the traffic will bear, and work for as many clients as we can. It’s up to us. When one gets pigeon-holed into being an employee, one is limiting one’s income.
These laws aren’t meant to protect anyone – it’s a natural extension of the treatment of Uber and Lyft in order to be more securely under the thumb of the state.
I disagree completely. I worked in the tattoo industry for a number of years and worked for a shop that tried to cheat his employees out of paying their taxes by labelling them independent contractors, despite affording control over their hours worked and the fact that we were working as tattooers in a tattoo shop. I completely the proper forms with the IRS and they designated me an employee, and I was fired for doing this. That’s not an independent contractor relationship, and businesses like that are abusing the employment laws in this country to skirt paying taxes.
Maybe do some more research on the subject before you act like it’s a tax-grab for the state, because your response is ignoring a large swath of people affected by this.
“Most of us who freelance can charge as much as the traffic will bear, and work for as many clients as we can.”
GREAT FOR YOU! Since it sounds like you get to choose your own clients and your own hours, that means you have nothing to worry about and you can still be classified as independent contractor under the new law! As stated in the article:
“The new law allows workers to be classified as independent contractors only if companies don’t have the right to control their work and how it is done. A number of factors go into making that determination, including how closely the worker is supervised _ for example, who sets their hours.
The work being done must not be part of the company’s regular business, and the worker’s occupation must be distinct from the company’s; in other words, a graphic designer cannot be an independent contractor for a graphic design firm.
There are exemptions for professionals like doctors, lawyers, architects and insurance brokers, but they must have the freedom to set their own hours, negotiate their own fees and exercise their own judgment as they do their jobs.
Workers like graphic artists, freelance writers and travel agents can also be exempt if they have similar autonomy. And people who work in barber shops, hair and nail salons and spas can have exemptions, but they have to set their own rates and hours, choose their own clients and be paid directly by the clients.”
However, if you work on a film set in production, you are working for the company yet they pay you as an independent contractor. Instead of doing the proper thing – going to a payroll company and have them be the employer of record – you screw over your crew and issue 1099s only because you do not want to pay the UI, SS, SDI, etc.
These people are working under the direction of a producer. Everyone on set should be considered an employee. The entire film and television industry has been gutted by producers issuing 1099 and now that the coronavirus has halted production completely, none of these workers – including my husband – can collect unemployment unless they will do it based on the $8K or so he earned by those companies that issued W2s.
In addition to the tax issue, this also takes money out of the worker’s compensation system and either places the burden on health insurers, if the IC’s are buying it or worse, on the tax payers if these IC’s aren’t buying health insurance and going to public health providers. At the same time, I also agree with Mike’s comments about being a freelancer providing minimal services to multiple clients. If we had universal health insurance, this wouldn’t be an issue.
Are employers required to provide health care?
Depends on how many employees they have. So, yes and no.
It’s not accurate to say this new law is strictly good or bad for employees/contractors. It’s good for some and bad for others. But in general it seems to be bad for business since it makes business more costly and more complicated. It could cause business to leave the State.
As for workers, just make sure you understand what you’re signing up for and getting into. Gig jobs are fine in a lot of ways, decent money and flexibility, but no, you won’t get benefits or retirement/pension/401k, etc. IF it’s still works for you, then do it. If not, don’t. It’s that simple.
The market will decide. If the demand for these gig workers is high and there are people willing to do it – they will. If not than companies/individuals will leave and find a more favorable place to conduct commerce. Government thinking that they can control or change this are correct. The market forces will move and the government will more than likely ignore it because they do not care. Individuals care but if they are abused and can find a more favorable place to do their business – guess what? I don’t understand a government that thinks higher taxes and more burdensome regulations are the answer to ANYTHING. But I digress.
I worked for 20 years in the Insurance Industry as an employee, only to be laid off the second time due to cutbacks. I’ve been an independent contractor for 28 years now and will not take employment with anyone. It is a shame the State has tried to control another facet of business they do not comprehend, under the guise of fairness. This is purely a union motivated Law, to whom the California Politicians are, for the most part, being paid very well.