Musicians, freelancers and coaches could soon be free of California’s landmark labor law

A proposal to adjust a landmark California labor law passed its first legislative hurdle Wednesday, heartening freelance journalists, musicians and other independent contractors who say they’ve been burdened by a restrictive employment status.

The bill would give new exemptions to a law, Assembly Bill 5, Gov. Gavin Newsom signed in September that limits how businesses can use independent contractors and requires companies to give employment benefits to more workers.

The “clean-up” legislation, Assembly Bill 1850, would allow some workers, like youth sports coaches and real estate appraisers, to maintain independent status, while keeping other low-income employees under the umbrella of AB 5.

“AB 1850 tries to strike a balance,” said Assemblywoman Lorena Gonzalez, the San Diego Democrat who wrote AB 5 and has said she planned to consider amending it even before Newsom signed it.

“I don’t want anyone to lose money. I don’t want anyone to lose their wages. I don’t want to mess up anybody’s small business,” Gonzalez said.

Her new bill unanimously passed the Assembly Labor and Employment Committee. It will head to the Assembly Appropriations Committee before it’s considered by the full Assembly and the Senate.

It still faces opposition, including from the California Chamber of Commerce, which said in a statement it would amend its position if the bill is changed to relax restrictions against business-to-business contracts.

“Any business should be able to contract with another lawful business to provide services,” the chamber said in a statement to the committee, “despite whether the services provided are within the ‘usual course of business’ or the service benefits the company’s customers and clients.”

Others during a hearing Wednesday said they wanted even greater loosening of the rules for freelancers and musicians.

AB 5’s proponents largely see the law as overdue relief to low-wage workers at the mercy of gig companies like Uber and Lyft, which have since launched an expensive ballot initiative in protest of the requirements. Freelancers and truckers have also filed lawsuits against AB 5.

Newsom has moved to uphold the law, including more than $20 million in his budget propose to enforce it. California Attorney General Xavier Becerra announced in early May a lawsuit against Uber and Lyft.

That lawsuit seeks millions of dollars in back wages for drivers who the state claims have been denied employment status and benefits.

This story was originally published May 20, 2020 at 2:05 PM with the headline "Musicians, freelancers and coaches could soon be free of California’s landmark labor law."