Posted on December 5th, 2019
Below is a complete transcript of this video.
What’s up fellow entrepreneurs as John Fagerholm again. And today I wanted to talk about a bill passed by Gavin Newsome called AB five.
It basically just codifies the case that I’ve been talking about for several months now called the Dynamex case.
And for those of you that don’t know Dynamex, please go back to my Dynamex videos so you can get an understanding of what it is.
But the gist of it is that just of Dynamex is that it makes it almost impossible to have independent contractors in California.
And now to back that up has been codified into law, which means there’s going to be official enforcement from the state government.
Typically when it’s just a case or it’s just case law, which Dynamex was then people Sue on it, but it’s up to the courts. But now you’re going to have official enforcement is my prediction.
So, Dynamex, and AB five, I think come out of California’s insistence that the gig economy is, using too many independent contractors and that it isn’t right.
And there should be employees and that they’re not getting a minimum wage and things like that. Well, in my opinion, you’re just keeping two willing participants from entering into a valid contract with each other.
But that’s just my personal opinion. Now for you, employers out there be very, very, very, very careful, careful if you are using independent contractors if you think someone’s an independent contractor based on Dynamex and now AB five, I would say you’re probably not correct.
Almost nothing as an independent contractor in California and an independent contractor is me. The attorney that you hire, that’s an independent contractor, the plumber that comes and fixes your sink, that’s an independent contractor.
But that guy that you’ve contracted with that I don’t know is doing marketing on your website.
It’s probably not an independent contractor anymore. So lots of things are not independent contractors that used to be into co. actually most things are probably not.
Most people are probably not independent contractors that used to be classified as independent contractors. So AB five will go into effect January one, 2020.
Please lookout for it. If you’re using independent contractors, please look, look to see, make sure you understand AB five.
Make sure you understand the Dynamex case and then look to see, don’t just bury your head in the stand cause it’s gonna come back to haunt you.
All right everybody, until next time, it’s John Fagerholm again. Be productive.
