Is congress going to put the Independent Contractor OOB?

[Jmac00]

n September of 2019, Governor Newsom signed Assembly Bill (AB) 5 into law. The new law addresses the “employment status” of workers when the hiring entity claims the worker is an independent contractor and not an employee.​

1.	Q.	What is AB 5 and what does it do?
	A.	AB 5 is a bill the Governor signed into law in September 2019 addressing employment status when a hiring entity claims that the person it hired is an independent contractor. AB 5 requires the application of the “ABC test” to determine if workers in California are employees or independent contractors for purposes of the Labor Code, the Unemployment Insurance Code, and the Industrial Welfare Commission (IWC) wage orders. The California Supreme Court first adopted the ABC test in Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal.5th 903. Among other things, AB 5 and later AB 2257 added a new article to the Labor Code addressing these issues (sections 2775-2787).
2.	Q.	What is the ABC test?
	A.	Under the ABC test, a worker is considered an employee and not an independent contractor, unless the hiring entity satisfies all three of the following conditions: The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact; The worker performs work that is outside the usual course of the hiring entity’s business; and The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.

California passed this shit in 2019, and a lot of independent trucker left Ca. Now I hear congress is taking up this stupid law to put ALL independent contractors OOB ( Out of business ) nationwide. So if I, as a HVAC contractor hire and electrician, does that make him an employee? do I have to send him/her a W-2 or a 1099??

 

[Zerex]

You got it.

A friend drove tractor trailer rigs for a guy......he thought he was an employee but got 1099's
big tax mess......

It might come to pass if you hire a contractor..you become an employer, and owe the usual employer taxes.......illegals DO work for cash.

Next door, my brother had a new roof put on a huge, very step roof...huge A frame.........
Local contractor showed up for cash..1/2 down, 1/2 at end........crew of 8 illegals..stripping, picking up shingles, installing new shingles.

My bro had to buy all materials, like he did it himself......only the contractor spoke English..all the rest.."no hable anglis"...contractor said he had a special crew in from Guatemala..........they worked like slaves.

I suspect that this is the case in many such settings......... due to insane NYS Employer rules.
get hurt..back to Guatemala.

 

[Saltwater60]

I was waiting for this. A few states have done things like this and now they are causing their citizens to lose out on a lot of job opportunities. Many places will not hire people from states with laws like this.

 

[TEOTWAWKI inc.]

Congress is going to put the whole fucking country out of business.

Gotta start somewhere.

 

[libertysnake]

I was waiting for this. A few states have done things like this and now they are causing their citizens to lose out on a lot of job opportunities. Many places will not hire people from states with laws like this.

What will happen contracting companies will merely incorporate in other places of the world, and Americans will contract through them. Then they'll be the third party face for contracting those people out to Americans again. There will just be a middle-man outside the states is all.

It will change nothing.

 

[Saltwater60]

What will happen contracting companies will merely incorporate in other places of the world, and Americans will contract through them. Then they'll be the third party face for contracting those people out to Americans again. There will just be a middle-man outside the states is all.

It will change nothing.

There are many contract employees that operate differently than that. This was done to do whatever they wanted for Uber and Lyft drivers. This will impact everything from adjunct professors to Uber drivers. I’m not sure there is a middleman for those jobs and maybe one will be created but this essentially does away with this class of workers and makes everyone an employee so they then get benefits.

 

[Mr. terzmo]

Aren’t illegals independent contractors looking for work? How they gonna pick oranges in californiastan?

 

[ManualF150]

Aren’t illegals independent contractors looking for work? How they gonna pick oranges in californiastan?

That is allowed in this day and age. Oh, and don't forget the apple picking in New Yorkistan.... I swear the last apple harvest season was picked by the Mexican drug cartel........

 

[Zerex]

IRS and SS drives this ..............they are the KINGS..................

Cash economy blooms despite their efforts.
Truck Drivers can open up their own trucking business and pay themselves...............

Becoming a LLC is going to be very popular for carpenters, and their fellow workers....

 

[repete]

You got it.

A friend drove tractor trailer rigs for a guy......he thought he was an employee but got 1099's
big tax mess...

Your friend is a moron not to know the difference!

 

[Jmac00]