California's Job-killing AB 5 About To Go Federal

Introduced by U.S. Rep Robert Cortez Scott (D-Virginia), H.R. 842 builds on California's AB 5 in order to institute the ABC test for all companies across the United States that hire gig workers and independent contractors. Some 212 representatives have signed on as co-sponsors.

California's job-killing AB 5 about to go Federal

This is sad. Whatever happened to freewill and the freedom to choose. While being a 1099 employee isn't something I'd do, if someone is willing to do it, let them.

As for the gig economy, it's helped me out plenty of times. I've done uber, grubhub and door dash. When this pandemic hit and my income got slashed, those things kept me afloat. The freedom to choose when I worked, and not having it interfere with my primary job worked out perfectly.

Trying to make these gigs full-time w-2 jobs will cause them to go under. It only works because the cost of doing business is kept low. Having to pay people and offer benefits will be passed on to the consumer and the cost vs convenience will no longer be in the favor of the consumer so they'll stop using it.

This is sad. Whatever happened to freewill and the freedom to choose. While being a 1099 employee isn't something I'd do, if someone is willing to do it, let them.

As for the gig economy, it's helped me out plenty of times. I've done uber, grubhub and door dash. When this pandemic hit and my income got slashed, those things kept me afloat. The freedom to choose when I worked, and not having it interfere with my primary job worked out perfectly.

Trying to make these gigs full-time w-2 jobs will cause them to go under. It only works because the cost of doing business is kept low. Having to pay people and offer benefits will be passed on to the consumer and the cost vs convenience will no longer be in the favor of the consumer so they'll stop using it.

It's all about control.

And note that as liberal a voter base that exists in CA, they voted to KILL this monstrosity.

There are ways around this. If the smaller company identifies as a consultant firm or has another primary business function it satisfies B. If the worker attempts to engage is business other than the primary it qualifies C. For instance, company ABC wants to haul freight for Acme Mega Carrier as an independent. ABC's main business function happens to be construction, for which they require their own DOT number and Authority, commercial auto and freight insurance as well as CDLs for their owners to potentially move freight in the interest of their business. In the course of business, they bid on a lot of construction projects, however they are very poor bidders and consequently dont get many if any construction contracts. It still qualifies as a different business than a motor freight carrier and satisfies the requirement.

I have seen this come up in construction, while a pain in the a$$, its solvable.

I spent several hours on the phone over this. The house passed it tuesday night 225-206. It is on the way to the senate. Hopefully since it takes 60 votes to bring it to the floor it will die there.