While the state recently passed legislation that will make more professions exempt from the controversial independent contractor law, AB 5, it left out others, including ride-share drivers.
“While any relief from AB 5’s disruption of contract work is welcome, the exemptions provided by AB 2577 seem arbitrary and complex,” Marc Joffe, senior policy analyst with the Reason Foundation, told the Northern California Record by email. “It would appear that industries with the right connections may be able to hire freelancers while other types of businesses cannot.”
Among the exemptions in AB 2257, which was signed Sept. 4 by Gov. Gavin Newsom:
* “Certain occupations in connection with creating, marketing, promoting, or distributing sound recordings or musical compositions.
* Musician or musical group for the purpose of a single-engagement live performance event, unless certain conditions apply, and would define related terms.
* Individual performance artist presenting material that is their original work and creative in character and the result of which depends primarily on the individual’s invention, imagination, or talent, if certain conditions are satisfied.
* Services provided by a still photographer, photojournalist, videographer, or photo editor, as defined, who works under a written contract that specifies certain terms, subject to prescribed restrictions.
* Services provided to a digital content aggregator, as defined, by a still photographer, photojournalist, videographer, or photo editor.
* Services provided by a fine artist, freelance writer, translator, editor, content contributor, advisor, narrator, cartographer, producer, copy editor, illustrator, or newspaper cartoonist who works under a written contract that specifies certain terms, subject to prescribed restrictions.”
“Of course, this leaves out app-based drivers who would be covered by Proposition 22 if voters ratify it,” Joffe said.
Another new statute, AB 323, which was presented to the governor for signature on Sept. 14, also would temporarily exempt newspaper carriers from AB 5 until Jan. 1, 2022.
While the state’s July unemployment rate of 13.3% is among the nation’s highest, perpetual governmental barriers don’t increase people’s chances of finding work, Joffe said.
“Not only does most of AB 5 remain in effect, but the state minimum wage will rise by another $1 on January 1st as Governor Newsom declined to use his authority to defer the increase in difficult economic times,” Joffe said. “So lawmakers are making it more and more expensive for employers to hire workers at a time when additional hands are likely to contribute less to the bottom line.”
“I would expect California’s unemployment rate to remain elevated compared to other states and more people to leave the state in search of jobs and consulting work,” Joffe added.