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 Re: Proposed law similar to CA AB-5?
Posted by  JanetK_CA on 10/19/20 4:51pm

I haven't taken the time to do a detailed comparison, but here's the law that's passed the House, so far:

http://www.congress.gov/bill/116th-congress/house-bill/2474

From a quick skim, it looks like the proposed federal bill, along with other issues, would incorporate the ABC standard, used in CA AB-5:

A. The worker is free to perform services without the control or direction of the company.
B. The worker is performing work tasks that are outside the usual course of the company’s business activities.
C. The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.

This article provides some updates and a very useful overview of some of the considerations, along with further links: http://www.investopedia.com/california-assembly-bill-5-ab5-4773201.

I'm still undecided on this issue, in general, as well as how it affects us as NSAs, primarily because of the "B" criteria, and the variety of ways it can be interpreted. When I first read it, I didn't think it would be an issue, but others with much, much more influence seem to disagree. If it wasn't for that, I don't think we'd have any concerns about possibly being classified as employees.

I feel for those who are working full time for one or two companies and should have the benefits and compensation they deserve, but trying to paint all others who don't easily fit into that box with the same brush doesn't make sense, either.

I debated moving this over to JP, but since it could directly affect us, I've posted on this page, but I'm ending it here.
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