Oh, this is charming:
By now you’ve probably heard at least a little something about California’s shocking new “freelancer” bill that went into effect January 1, 2020. Assembly Bill 5 (AB5) is sweeping and vague but basically it redefines the relationship between employers and employees, effectively ending independent contract work and killing the “gig economy”.
…
Independent contractors across the nation could soon be suffering the same fate as their California counterparts. A federal version has passed through committee and now sits in the House of Representatives waiting for a floor vote. This is not a drill. This is real.
As someone who depends utterly on the gig economy to supplement my shitty SocSec income, let’s just say that I’m casting a very baleful eye on this development.
I can’t see this bill making it into law — I can’t believe it would make it through the House, Senate and be signed by POTUS.
Its title is H.R.2474 — the “PRO Act” — and I would recommend that everyone reading this send a letter (not email, those assholes in Congress have installed layers and layers of screeners to ignore us) telling their Congressweasel and Senator to treat this foul bill like the rabid dog it is, and shoot it on sight.
I’m not going to threaten anybody or anything, but if this bullshit makes it into Federal law, I guess we’ll see just how “real” this gets. I’ve been destitute before, and at age 65 I have no intention of going through that again.
And if any political wiseguy tells me to learn how to code… let’s just say I already know how to code. I also know how to grease a fucking rope — and I’ll leave it to someone else to tell me which one I’d rather do.
“As someone who depends utterly on the gig economy to supplement my shitty SocSec income” will be me in another six months after I hit the magic “earn all you want with no deferral” number. This development couldn’t come at a less welcome time. Thanks for mentioning it; I wasn’t aware the Feds were going in that direction, too.
The cure is simple, as this is how I’ve been earning my money for a long time. Have more than 1 person or entity that you make money from. As it is, working only for 1 company you are fulfilling the roll of an employee rather than a subcontractor.
I’m not going to go too far out on the limb here. But suppose you started a small business at something you enjoy doing, say, firearms consultation, etc. Get Vistaprint to make up some biz cards, etc. Let your imagination run wild with scenarios on how this can happen. And, who says you only have to have 1 business? You could have a dozen or more. None are making a lot of money but all are active.
As they said in Czechoslovakia back in the 60’s, “When the gov’t gets tougher the people get sneakier.”
Just wait until they discover that this bill applies to a huge number of IT specialists and entertainment industry people.
Massachusetts tried this a couple of years ago. They tried to make IT Consultants subject to sales taxes. They though it would only apply to a few large IT Companies, But of course they wrote the law so badly and passed it in the middle of the night that when they published the rules no one could figure out what was taxable and what was not. They thought they could get a sales Tax on services – opening the door to a huge new revenue stream.
They didn’t count on 35% of all business ( seeing the writing on the wall that they were next) saying they were simply going to move to 60 miles north to New Hampshire. They had to very publicly unwind the legislation.
This will blowup in California as well. Do you have any idea how many “consltants” work at Google and others. It doesn’t just apply to Uber and Lyft.
…and independent truckers, lawn-care people, house cleaners, script writers & photographers, (…and a lot of other artists in the movie-making business.), and independent plumbers, electricians etc too.
The bill in Cali was written for and about taxi drivers, who have taken a hit from services like Uber and Lyft, but it will touch a lot more folks than that. But what do you expect for a state that’s ate-up with democrats and dumb-asses.
Lorena Gonzalez is a paid “Lady of the Legislature” for the labor unions.
“independent truckers, lawn-care people, house cleaners, script writers & photographers, (…and a lot of other artists in the movie-making business.), and independent plumbers, electricians etc too.”
You mean the jobs they’re importing illegals who can work off the books for cash to do? Because as sure as God made little green apples, the only contractors they’ll enforce this on are the ones who have US citizen in their resume.
OK, Boomer!
Reading further on this new law there is a long list of exempted industries. Barbers, architects, media people, doctor’s, Real estate agents. etc. SEIU and Teamsters are objecting . ( because they want more members.
In any case, the solution seems be that you can Incorporate, ( I do software development as an S Corp with a “Corp to Corp” agreement ) I have one employee — me. Cost $ 1,000 to pay the fees to the state. but it’s a one time expense and I can charge $ 150 / hour rather than $ 50.