California’s burdensome independent contractor regulation is under fire by a bevy of businesses, groups, and associations.
California’s burdensome independent contractor regulation is under fire by a bevy of businesses, groups, and associations spanning industries from journalism to independent truck drivers.
Passed in the wake of the state’s Supreme Court Dynamex decision, Assembly Bill 5 rewrote key provisions of California’s labor code to severely limit employers’ ability to classify workers as independent contractors. Although it was primarily designed to target gig-economy workers working with Uber and Postmates, the law severely restricts freelance journalists, truck owner-operators, and even nail salon workers.
In the run-up to the law’s implementation earlier this month, many employers terminated contracts with California-based independent contractors and some businesses are leaving the state altogether. Independent contractors are challenging the law in court with varying degrees of success.
The American Society of Journalists and Authors and the National Press Photographers Association banded together to challenge the law in court on First Amendment grounds. Under the new law, writers and photographers are limited to submitting 35 pieces of content to a single media organization per year, while video journalists have no exemption at all. A U.S. District Court denied two freelance journalists’ request for a temporary restraining order last week.
The Western States Trucking Association also filed suit in December, claiming that the state’s provisions conflict with federal protections against states regulating the rates, routes, and services provided by the trucking industry. A federal judge granted a temporary restraining order prohibiting enforcement of the law against independent truckers.
NFIB fought against the bill and continues to oppose the law.
