Dear Colleagues,

During this Thursday’s Session, I’ll be making a motion to bring AB 1928 to the Floor for a vote. I’m writing to ask for your support.

AB 1928 is an urgency measure. It returns the legal standard for independent contracting to what it was for decades before AB 5 and the Dynamex decision. I’m proposing we suspend those recent changes pending further legislative consideration.

Last fall, many legislators voted for AB 5 to help California workers improve their job prospects, wages, and benefits.

In the months since, each of these goals has been turned on its head by the law’s unintended consequences. Many Californians are now out of work. Others have taken a sharp pay cut. Still others have lost benefits like deductible expenses, IP protections, and flexibility as to where, when, and with whom to work.

So far this year, legislators have introduced 33 bills amending, narrowing, or overhauling AB 5. Everyone at the Capitol recognizes the law is causing widespread hardship. Even the author is proposing major changes.

But none of these bills has an urgency clause. That means relief will be delayed until at least next year. For Californians whose professional relationships are severed or businesses shuttered in the meantime, that’s too late.

On the other hand, enacting changes hastily may create further chaos. Any intervention would come with its own unintended consequences. Additional exemptions and multi-factor tests could compound legal uncertainty. Even genuine improvements may fail to thaw the chilling effect of the law. Hiring entities will continue to simply steer clear of California.

To avoid this dilemma, I am offering a different path forward: press the pause button. This should be acceptable to everyone. While some of us disagree on the best remedy for AB 5, all of us agree the status quo is unacceptable and changes are needed. AB 1928 would simply put AB 5 on hold while we consider what those changes should be.

This is a simple action, but it’s of the highest importance to a great many Californians. I’m sure everyone’s heard stories from constituents whose lives have been upended by AB 5. (I gave each of you a book of these stories, which you can see here.) You can also read below what people affected by the law are asking you to consider before you vote on Thursday.

With AB 5 causing so much harm, and with all of us in agreement that the law needs to be changed, there’s simply no reason to continue enforcing it. Supporting AB 1928 is not in conflict with your prior decision to support AB 5. It’s in accord with your current position that AB 5 needs changes.

As a matter of common sense and human decency, I respectfully ask for your “aye” vote this Thursday.

Sincerely,

Kevin

Kira: Women currently make up the majority of freelance work. Traditionally what we now know as “gig work” has been the particular apparatus for minority (especially black) women to earn their financial freedom outside of a corporate system that may be wrought with systemic racism. The gig economy has been the great equalizer for minorities, particularly women. Any notion that AB 5 helps us is a tragic misinterpretation or outright lie. Justice for black and minority women means giving us back our right to work as we see fit.

Kim: Per the US Bureau of Labor Statistics, 79% of independent contractors prefer their current situation vs. a traditional job. The ABC Test in AB 5 is toxic to successful creative ICs. It’s not helping exploited workers. It’s destroying chosen careers and lives.

Lisa: AB 5 is taking away not only our work, not only our incomes and means of feeding our families, but our very identities. It is cancelling our unique talents and our way of life. It is saying, “you don’t get to be who you are, WE determine who you are.” No one disputes that willful misclassification happens. But so many of the people & small businesses AB 5 impacts are NOT those it was meant to. The acute & immediate pain & suffering it is causing to innocent bystanders demands immediate remedy.

Brittany: AB 1928 doesn’t mean misclassification must continue. It will stop the bleeding while the legislature crafts a new path forward without so many casualties. There is now bipartisan & grassroots support on this issue but you’ve got to stop the pain first. There are too many fixes that will be necessary absent repeal. The Legislature will spend years introducing cleanups if it tries to do this piece by piece. Lawmakers were given the wrong impression about the level of support from stakeholders. They know that now. It’s going to get worse. Most still aren’t complying and/or are unaware. Once enforcement begins, there will be another wave of layoffs & closures. Many have kept doors open JUST in case of repeal. If this fails, they close. Lawmakers will never hear the end of it.

Gloria: Some freelancers are so by design and/or by choice. Our professions are designed that way (not to be a 9–5) or because it’s the only work we can do (due to our life conditions — people with disabilities & chronic conditions, stay-at-home & single parents, seniors, caregivers & many others that need work flexibility so they can make a living. The most important thing is: Not all IC are misclassified. We have the right to decide how we want to make a living.

Erica: Everyone’s story of pain and fury get me, but I just read the most heartbreaking letter from a sports journalist. Freelancing gave him his life. AB 5 is taking it away. he’s an example of why we fight — it’s about justice. pure, raw, beautiful justice.

Alana: My biggest reason for not supporting AB 5 is that I feel like it is a moral failure. It’s the CA leaders abusing their power. Mostly middle to lower income people suffer from AB 5. The rich in CA are all exempt. I understand some legislators may have had good intentions, but the fallout was that freelancers lost income. That’s wrong that they rushed the bill and it led to that.

J.M: AB 5 is an ageist, ableist law. Seniors & those with disabilities cannot even get through the door for an interview anywhere these days. We can make far better than minimum wage with freelancing. Without freelancing we lose everything, especially our dignity.

Jessica: As more people lose clients and income, they’ll experience a drop in spending power, which means less money going into the economy. Stores and other businesses may have to lay off workers if not enough money comes in, those workers won’t have a lot of spending power, and so on. In other words, if we lose our businesses, we can’t buy from or support other businesses, and the economy could slow down.

Jeff: AB 5 attacks my sources of income in every possible way & practically destroys any possibility of making a living in my industry as an independent software developer/IT professional. AB 5’s vague, complicated legal landmines immediately scare away all potential clients. — AB 5 made subcontracting Illegal. It’s very common in our industry — Firms retain expert contractors with a specific set of skills/industry knowledge. It’s not possible to do work for multiple companies in various industries because of massive confidentiality andNDA conflicts. Instead of risk massive fines & lawyer fees to pass vague AB 5 tests, companies took the safe, easy way: retain Out-Of-State contractors.IT pros also lose all intellectual property ownership with no ability to negotiate code licensing. All will be Owned by firm.

Briana: I have a very specialized area of consulting expertise & am not needed all the time. Being self employed lets me go to market with many others — a system that benefits us all. I like the freedom & flexibility. I’m not exploited, don’t want to be an EE. I set my own rates, hours, choose clients/projects I want to work on. I make more and work less than I did as an employee. I finally closed the gender wage gap I had while employed. There should be a carve out for people who make some multiple of minimum wage — we’re not exploited!

Adam: regulatory uncertainty, even with a technical pathway to working, results in businesses looking out of state, for safety. Fixes do not solve the problems because the added complexity and uncertainty will permanently destroy offers to ICs, even if they register an LLC. Legislators rarely grasp the lost opportunity due to an uncertain/complex regulatory climate. ICs can deduct expected of tools, equipment, instruments, etc. Employees cannot deduct any expenses!

Jen: Small businesses need to occasionally pay other small businesses that do the same type of work in cases of illness or a larger project that requires the assistance.

Andi: Stanford economy engineer, Paul Oyer, gig economy expert, says the gig economy is the only labor sector to see growth since 2005; it enriches immigrants; it’s a third of the workforce. Harvard economist, Claudia Goldin, points out that gig work narrows the gender pay gap by bypassing the “job flexibility penalty”: “Female workers may be particularly drawn to gig work because of the flexible hours and transparent compensation.”

Gonzalo: The LAO in a report on AB 5 says that it has affected over 1 million Californians, that most ICs will not be hired, especially elderly workers, those with disabilities, etc. This is a bipartisan issue: all Californians regardless of political views have been affected & that all of us are equally outraged. Where a scalpel was required to address some problems in some industries, AB 5 is a sledgehammer which has negatively affected the financial livelihood of 1 million Californians. Never has so much harm been caused to so many by a few.

Garmart: The rules on business to business exemptions actually prevent single owner S-Corp and LLC members from working as loan-outs for clients. This is how all TV and film production use to work until AB 5 came along.

Jan: I am a home health social worker contractor-I am now unable to staff social workers for homebound elderly & young disabled patients that need our help to obtain resources to stay home to prevent hospitalizations & nursing home placements eventually costing CA lot more money.

Nancy: AB 5 is hurting all optometrists! We do not want to be employees. Working as independent contractors allows us to go where we are needed to efficiently provide health care. If AB 5 is not repealed, we will be forced to raise our fees which in turn will affect many people.

Billy: Workers should be able to decide what works best for them. AB 5 does not create jobs, nor does it have any tools to facilitate a conversion. It only forbids certain work. Conversion is painful and not possible for many, because of personal situations.

Len: AB 5 has destroyed the livelihood of hundreds of thousands Californians. Many I.C.s are working moms, the disabled, minorities, those needing flexible hours etc. They purposely choose that path to work independently when, where, and for whom they want.

Anonymous: My concern has grown beyond fear over my own livelihood into worrying about what the sudden loss of income to so many people will do to the economy, both in CA & throughout the U.S. You can’t have 1000s of people suddenly out of work with no ill effect.

Richard: The thing that everyone seems to miss with AB 5 is that freelancers with multiple clients will never work enough for any single one to receive any benefits. We will never receive unemployment, because even if we lose a client, we still have others and thus income.

Michael: Sick, elderly, disabled, low income, single parent, unskilled, full-time students, etc…many of the people who represent the demographic of consumers who depend on low cost rideshare are the same ones who depend on gig work for survival in this highest taxed state in the US. The effects of AB 5 are already real to many lives and business but the amendments now needed to appease all industries are becoming chaotic from a regulation and enforcement standpoint.

Carolyn: AB 5 is also decimating theater companies, music ensembles, and entertainers.

Amanda: AB 5 interferes with people’s right to contract. AB 5 doesn’t allow people who want to be ICs to continue to do so.

J: Taking work from people that want gigs and giving it to people that want jobs doesn’t fix a problem, it creates one.

Dave: Not everyone needs or in fact wants to be a full time employee.

Megan: Forcing freelancers to become employees stops their ability to deduct expenses that they would be able to deduct from their taxes, thus making them pay more, even if their expenses are the same (driving, equipment like musical instruments, etc)

Solo Opera: Small arts organizations will close because of AB 5 and in turn there will be lost contracts for musicians, designers, singers, and more. In addition to our industry, there are hundreds of industries affected. This is why is must be repealed.

Mia: There’s so much confusion & caveats in this law that it’s easier for many clients to hire out of state, & out of the USA. That already happening. AB 5 turns CA workers into ‘problems’ to be avoided. Many of us are not ‘hourly’ we work per project.

Gail: We’re allowed “ life ,liberty and the pursuit of happiness”. It’s now taken away.

WritersInfo: AB 5 eliminates default ownership of creative works (writers, musicians, etc) when ICs. Many ICs want to retain ownership for any number of reasons. As employees, even if there is work, it becomes complicated or impossible.

Aliza: An economic impact study/survey should have been done before this bill became law. The lack of such has created the catastrophe we now have. Legislators need to take responsibility for how their actions are affecting us.

Meghan: At the end of the day Uber and Lyft won. They have money for ballots. Big business wins because they can farm out contracts. Big money wins because they just amend. But you effectively annihilated any small business, or creative niche entrepreneur. It’s targeted and biased.

Mysty: The arts and non-profits that can no longer do business under AB 5. Gutting the arts in California is unacceptable.

Sandi: AB 5 impacted small arts organizations who used to give stipends to those who gave of their time to work behind the scenes or in front. Now everyone has to be a volunteer! AB 5 hasn’t even touched every one who might be impacted. What happens next year, when businesses sent out 1099’s only to be audited by the State and fined. The repercussions will be extreme. AB 5 keeps those who wish to join a closed union from getting the experience they need to even be considered for the union. Examples: SAG-AFTRA, AEA, IATSE. Suspension is the only appropriate approach, sending this back to committees to create an appropriate bill truly addressing misclassification and support for unions, without impacting those who run an independent business. Suspension allows those who work in these many fields to plead their cases as to why AB 5 doesn’t work for them. Then make an appropriate decision on whether these fields are misclassified.

Colleen: Musicians and singers spend a lot of money on equipment and self-promotion and if we can’t write that off our federal taxes if we are employees.

DJ: There are large numbers of people who actually want to be ICs, who do not need or wish to be classified as employees. We didn’t ask for AB 5. It’s our choice to be independent.

Brad: Working freelance from home prevents the need to pay the ridiculously high cost of childcare we’d incur if forced back into an office. Most families need dual salaries and childcare costs drastically eat into that 2nd salary, effectively making it under min wage.

Renee: If you care about women, seniors, and people with disabilities you will Repeal AB 5Some of us didn’t need to be saved.

Anonymous: The creative, independent, and entrepreneurial class are like catalyst (initiator in the epoxy). Part A Part B. Without the initiators, nothing gets invented or created that can bring jobs. Killing off the “initiators” on this economic ecology is a mistake!

Donna: What do people do if another recession should happen in 2009 I was Laid off I sent out 100’s of resumes no one was hiring unemployment was not enough to support me I started freelancing I did jobs for people in N.Y, Texas, Canada, the UK, Germany. This is how I survived..without 1099 I would have been homeless. If another recession should happen AB 5 ties people hands & prohibits them from surviving. How can they do this it’s like throwing people into a lake with their hands & feet tied & expecting them to swim.

Anonymous: One thing that makes AB 5 so difficult. We can’t have customers in the same industry. My Trucking company can’t have a Trucking Company as a customer? Why not?

Joe: Look at the number of people who submitted 1099s with their fed/state tax statements in 2018 (2019 still in progress), multiply that number by the number of dependents each claimed. This will give you a valid estimate of how many people AB 5 impacts.

Megan: Access to healthcare. Patient care. Many small physician offices closing due to the inability to contract nurse practitioners. It is difficult to find full time help in many rural areas and many of the offices rely on contracted help to stay open.

Anonymous: It can’t be overstated how much freelancing is both the safety net in an economy where layoffs are regular and normalized, and the first step to escaping that cycle of hire/layoff by creating your own business.

Sue: We already have 60,000 homeless in L.A. County alone. Why would CA Democrats put any restrictions on work?

Ku: A lot of interpreters and translators are losing/have lost work currently. My friend lost 1/3 of her income in January, a company that used her a lot for out of state conferences had to let her go.

Joseph: Freelance writing from home saved me during the crash of 08 and 09. It was always readily available, as opposed to full time jobs. I can do freelance writing with people all over the US — the ability to work is much greater. Here’s my main point: Who are politicians to decide for CA workers where, how and under what capacity they can work? Many freelancers love what they do. Freedom to work as we want is central to being a free man or woman in the US.

Robert: I want to see more much freedom for both employers and independent contractors to choose whether they want to be treated as employees or independent contractors. The state should stay out of it.

Petra: Requiring sole proprietors to incorporate is an unnecessary financial burden. Uber/app-based drivers make up less than 10% of California independent contractors. AB 5 hurts the majority of freelancers. As freelancers we often have multiple contracts with multiple clients and we negotiate our own working terms. AB 5 makes us beholden to employers.

Marek: AB 5 is a horrible law that has affected me and many other contractors and freelancers in California. I am actually moving away from California in the next few months because of this law (after 37 years in this state).