In September 2019, California Governor Gavin Newsom signed a bill that made many corporate firms unhappy. It was scheduled to be in effect from January 2020, but many businesses tried to fight against it. The California Assembly Bill 5, also known as the ‘Gig Worker Bill’ was introduced all over California. Since the Inland Empire is part of California, it is obvious that the region was affected equally.
The intent of introducing the bill was to provide equal employment rights for independent contractors. For example, when companies like Uber hire their drivers, they do not take responsibility for the driver’s liabilities. Here, the driver is an independent contractor. Many people prefer to work as independent contractors, but they do not get benefits as normal employees do.
Assembly Bill 5 aims to make it mandatory for companies to recognize independent contractors as employees, and provide them benefits. This means that they will work fewer hours, earn more money and have a better quality of life.
Though the bill is aimed to have a positive impact on independent contractors, it has received mixed reactions. Some gig workers are happy about the bill, especially if they are Uber or Lyft drivers, but some gig workers who work independently without the help of any other company do not like it. This is because they will not get any more gigs and will eventually go out of business. If they have to start working as an employee at a company, they will earn much less than they do now.
Since freelancers also qualify as independent contractors, the bill makes it harder for them to find new opportunities. If they work remotely, companies in California can hire a freelancer from any part of the world to do the job.
The bill does not seem to draw a line between freelancers and independent contractors. Many freelancers and gig workers see themselves as entrepreneurs who find their own clients. With this bill in effect, they are more likely to be avoided by local businesses due to the additional overhead chargers.
The only option left for freelancers is to move out of California and that seems unfair. For now, there are no updates on the bill, but it is evident that the bill would affect independent contractors directly. There could be amendments to the bill later on, but it still remains a threat for startups and freelancers in the Inland Empire and the rest of California.
“
Enjoying the startup news & media? Support us!
We have big plans, and we need your help!
Startempire Wire is a community of people working together to promote innovation, entrepreneurship, and investment in the Inland Empire. We provide resources and connect people with the startup culture.
We believe that the Inland Empire has all of the ingredients for success. This region just needs a platform to show the world what it can do – And this is exactly what Startempirewire.com is doing. Our goal is to act as a megaphone to connect the dots between the best startups, events, and people in the Inland Empire.
We have big plans, and we need your help! If you are passionate about creating a thriving local startup ecosystem, then we would like to invite you to join in contributing to the community by supporting us. You can do that by supporting us financially or by being an active contributor. In return, we will give you (depending on sponsorship level) free access to our content, other level based perks & the opportunity to connect with a network of passionate people working to build a better future for all of us.
We cover the good and the bad of entrepreneurship, startups & business events; we do it with passion and purpose. If you like what we do, support us & please consider becoming a patron. Your support is essential for independent local startup media to survive & thrive.
You can make a regular one time donation to become a sponsor at any level, or you can choose to become a monthly or event sponsor. Every little bit counts! Thank You
Imagine a future where you can hop on a high-speed train, leave the traffic jams behind, and travel between the High Desert and downtown Los Angeles without getting stuck in a jam. A $25 million grant for the Brightline West project to the San Bernardino County...
Rancho Cucamonga, [Date] – Chaffey College InTech Center, in collaboration with the City of Rancho Cucamonga, has unveiled the StartItUp app—an innovative resource aimed at assisting individuals in their quest to establish and grow successful businesses. This...
Innovation is the cornerstone of progress in today’s fast-paced world. Disruptive technologies are at the forefront of transformation across various industries. If you’re a visionary entrepreneur or a scientist with groundbreaking technology in your...
Startempire Wire premium content access is free during the beta period of our website. Join during beta and get a grandfathered discount when we launch.
$5 for first month then $15 per month
Would you like to receive Startempire Wire updates in your inbox? Subscribe below!
"*" indicates required fields
Follow Startempire Wire on other social media channels.
0 Comments