{"id":1409,"date":"2019-11-05T10:50:34","date_gmt":"2019-11-05T10:50:34","guid":{"rendered":"https:\/\/webislove.com\/?p=1409"},"modified":"2019-11-05T13:23:04","modified_gmt":"2019-11-05T13:23:04","slug":"why-california-bill-ab-5-may-be-problematic-for-freelance-writers","status":"publish","type":"post","link":"https:\/\/webislove.com\/why-california-bill-ab-5-may-be-problematic-for-freelance-writers","title":{"rendered":"Why California Bill AB.5 may be Problematic for Freelance Writers?"},"content":{"rendered":"\n

As the economy of the United States shifts into the so-called \u2018gig economy\u2019 California took big steps in cracking down on new potential abuses, but the bill may be a bit of a double-edged sword. <\/p>\n\n\n\n

Gig Economy Growing: <\/h2>\n\n\n\n
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For those of you who haven\u2019t heard the term used before, the gig economy is defined by more and more people changing their work arrangements to essentially be independent contractors. <\/p>\n\n\n\n

These contractors can then work under companies that don\u2019t have to officially hire them as full-time employees. <\/p>\n\n\n\n

This works a lot better in a digital world, where a myriad of telecommuting platforms and services exist. It has become easier and easier to get work done outside of a traditional office or set location. <\/p>\n\n\n\n

With this economy, more and more people want the agility to manage their own hours, and enjoy the other benefits of being self-employed, for example, spending more time with their families. <\/p>\n\n\n\n

According to Forbes<\/a>, a massive majority of 80% of freelance workers would not prefer to work in a more traditional salaried position. <\/p>\n\n\n\n

Favoring the freedom and forms of work that they receive as a separate contractor as opposed to a conventional job, where they may not enjoy their work to the same extent. <\/p>\n\n\n\n

As the United States is transforming further and further into this gig-based economy, there are fewer and fewer people entering in more traditional 9-5 jobs. <\/strong><\/p>\n\n\n\n

There is a constant stream of new apps or companies that are creating new markets entirely, or bringing big changes to old ones. <\/p>\n\n\n\n

A good example of a worker in the gig economy would be someone who drives for Uber, Lyft, Doordash, etc. <\/a><\/strong><\/p>\n\n\n\n

The \u2018employees\u2019 aren\u2019t directly hired by these companies, instead, the ride-sharing service provides the platform for riders and drivers to match. The drivers serve as a third party to the app. It is in that gray area of being a semi-contracted worker where some of the problems are growing. <\/p>\n\n\n\n

AB5, Defining the Grey Areas: <\/h2>\n\n\n\n

Mid-September AB5 was passed and signed into law. <\/a><\/p>\n\n\n\n

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image source: sfchronicle.com<\/a><\/p>\n\n\n\n

This bill built on the California state Supreme Court ruling Dynamex, which required the classification of certain individual contractors as official employees. It was designed mainly to target ride-sharing apps, seeking to classify drivers as employees. <\/p>\n\n\n\n

The California bill does do a lot in the way of protecting these workers more than any legislation to date. <\/p>\n\n\n\n

Currently, companies have been avoiding both federal and state law by classifying \u2018workers\u2019 as independent contractors rather than actual employees. <\/strong><\/p>\n\n\n\n

They get around employment standards, wage rules, and commitments to unemployment funds.  <\/p>\n\n\n\n

AB5 follows three main tenants that establish how a business should classify a worker or a contractor: <\/h3>\n\n\n\n

It states that a…<\/p>\n\n\n\n

#1<\/strong>
person providing labor or services for remuneration shall be considered an employee rather than an independent contractor unless the hiring entity demonstrates that the person is free from the control and direction of the hiring entity in connection with the performance of the work. <\/p>\n\n\n\n

#2<\/strong>
the person performs work that is outside the usual course of the hiring entity\u2019s business.<\/p>\n\n\n\n

#3<\/strong>
and the person is customarily engaged in an independently established trade, occupation, or business. <\/p>\n\n\n\n

Under this definition, it would seem that specifically ride-sharing apps and other new gig economy businesses are the main entities that were targeted by this bill, as this is where most of the abuse happens. <\/p>\n\n\n\n

Preventing Abuse: <\/h2>\n\n\n\n
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image source: usatoday.com<\/a><\/p>\n\n\n\n

With a large and growing category of new workers, there isn\u2019t a lot of regulation or control over the indirect contracting market. <\/p>\n\n\n\n

Companies often use these loopholes in ways that abuse their contractors. <\/p>\n\n\n\n

For example assigning these workers the same hours of a full-time employee, often at less pay. <\/h4>\n\n\n\n

Beyond that, the biggest kicker in that situation is that the workers also receive no health or other benefits. <\/h4>\n\n\n\n

Healthcare specifically has to come out of their pocket, which means if someone takes ill suddenly and can\u2019t work to cover the costs of healthcare, they may go bankrupt. <\/h4>\n\n\n\n

Another major issue is that there is no direct job safety in these new jobs that is afforded to employees with tenure that some more conventional workplaces may provide. <\/h4>\n\n\n\n

One of the most eye-opening and scary reports that we have seen detailed the horrible cases of the abuses that drivers for Uber, in particular, had to deal with.<\/p>\n\n\n\n

According to the Transport Workers Union, nearly 1 in 10 drivers were physically assaulted on the job, and approximately six percent were sexually assaulted. <\/strong><\/p>\n\n\n\n

These numbers are higher than in most other professions. <\/p>\n\n\n\n

The difference? <\/strong><\/p>\n\n\n\n

There is no employer protection for these drivers. Corners are cut in the areas of support from the company. <\/p>\n\n\n\n

Reporting bad riders, who may have even committed a crime, is difficult and the information gets sent essentially to an online support ticket system for review.<\/p>\n\n\n\n

There isn\u2019t an HR department or some other internal agency specifically for the drivers. <\/p>\n\n\n\n

A good industry comparison would be to the older taxi industry, which actually is the employer of the drivers most of the time. <\/p>\n\n\n\n

Many companies support laws for example, that increase the minimum sentence for anyone assaulting taxi drivers in states like New York. Overall there are very limited protections for rideshare app drivers. <\/p>\n\n\n\n

Unfortunately, the wages earned don\u2019t do much in justifying the increased hardship these drivers face. <\/p>\n\n\n\n

One of the biggest and most pressing problems is that approximately 60% of drivers earn below what Uber reports as the expected income for drivers at 16$ an hour. <\/strong><\/p>\n\n\n\n

California assembly bill 5 does a lot in the way of cracking down on rideshare apps. It ensures that they will have to adequately pay drivers who are already working essentially full time for the company. <\/p>\n\n\n\n

Uber, Lyft, and Doordash can not survive without their drivers, and they make up the majority of their \u2018workforces\u2019 so it only makes sense that they should be treated as legitimate employees. <\/p>\n\n\n\n

While this bill will likely cause rideshare companies to take good steps in changing the way their drivers are compensated, the bill is not without its problems in reference to all the other areas its reach affects. <\/p>\n\n\n\n

It\u2019s Looking Like Freelancer\u2019s Nightmare: <\/h2>\n\n\n\n

In the original version of the bill there was no mention of the majority of other markets. Naturally, as it expanded its scope and narrowed its rules, it became clear with an amendment that there would be changes coming for freelance writers as well. <\/p>\n\n\n\n

The bill mandates a 35 article limit on the number of pieces a freelancer can write for a person or business. Each article would count against that yearly quota of 35, and even pictures for photojournalists count. <\/h4>\n\n\n\n
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Wrote about how California's #AB5<\/a> Bill limiting freelancers to 35 submissions per publication a year happened. Spoiler: basically, because legislators refused to listen to freelancers.

For @NYPost<\/a>: https:\/\/t.co\/Ni4h0Wh7fS<\/a><\/p>— Jennifer Wright (@JenAshleyWright) October 26, 2019<\/a><\/blockquote>