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Changes Coming For AB5

 

Last updated 4/3/2020 at 12:02pm



With much controversy over Assembly Bill 5, changes are being introduced to alter the terms that apply for freelance writers and photographers.

Assemblywoman Lorena Gonzalez announced the changes to address feedback from freelance writers and journalists over the effects of AB 5.

“Having heard additional feedback from a variety of freelance writers, photographers and journalists, we are making changes to Assembly Bill 5 that accommodate their needs and still provide protections from misclassification,” Gonzalez said.

The changes will remove the cap on the number of submissions that a freelancer writer, photographer, or editor can submit to one hiring entity before they must be classified as an employee. Hiring entities must not use a contractor to replace an employee position, as well. However, many companies find it cheaper to hire an indpendent contrtactor.

When contractors provide services, their contract must specify the rate of their pay, when they receive payment, and the individual’s intellectual property rights to the work submitted. The changes also say a freelancer can work for more than one hiring entity and cannot primarily perform their work at an entity’s location.

AB 5 was signed into law in September of 2019 by Governor Gavin Newsom, taking effect Jan. 1 of this year, requiring companies, including tech giants like Uber and Lyft, to classify their independent contractors as employees. The bill also secured protections like minimum wage, overtime and workers compensation for workers.

The affect, however, left many freelancers and contract workers in various industries facing loss of work. Many were angered, arguing the bill was overreach and destroyed the “gig economy” flexibility and appeal.

 
 

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