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  • Exemptions to New Ban on Independent Contractors Leave Small Businesses and Non-Profits Out in the Cold

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    Van Nuys, Calif. - VICA continues to have strong concerns about the movement towards codifying the Dynamex decision, and then carving out exemptions for certain industries.

    VICA President Stuart Waldman said:
    “These carve-outs exempt industries with powerful lobbyists, but leave many small businesses and non-profits out in the cold. For example, a small translation agency with a pool of freelance translators, or a local newspaper which pays freelance authors for one or two columns per year, would be in violation of the proposed law. A small non-profit arts organization which puts on five performances a year showcasing freelance artists doesn’t have the human resources expertise to navigate hiring and laying off artists for these performances. Think tanks wouldn’t be able to contract with tenured academics across the country.
    “As currently proposed, AB 5 bans all of these professionals from hiring out their services as independent contractors, even though these are perfect examples of contracting that benefits workers and organizations. Many of the abuses that Dynamex proponents cite were already illegal under California law. Making a law and then exempting various sectors is a bad way to make public policy – every year there will be new types of businesses and non-profits who need to be exempted. VICA urges the Legislature to continue negotiating to allow independent contractors to continue to thrive in California.”
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