This law was sponsored by Lorena Gonzalez of South San Diego County. She believed that companies were classifying workers as Independent Contractors instead of employees. This was to deny them protection of Minimum Wage, Overtime, etc, etc, etc.
Lorena did not speak to any friends, associates or acquaintances. Real Estate Licencees and many other occupations such as Doctors, Dentists, Lawyers, Engineers, and Accountants lobbied hard to get exempted.
My company in 2019 paid 20 plus speakers as ICs, or as I call them, 1099’s. I sent a survey out last week and asked them what method of payment they preferred and all of them said 1099.
I do not want to pay them W2, they do not want W2, and the students do not want W2. Prices might have to go up.
I was just shown an article that stated Uber would be “re-evaluating” pricing. They also said that they would pay a minimum wage of $21.00 and institute other changes. I believe reevaluating would mean “increasing”.
The state of California passed this law to regulate Uber, Lyft, Grub-Hug, and other “gig industries”. Sometimes boutique companies get caught in the crossfire.
See you in class.