They then pay the higher amount of either the AMT or the normal tax burden. The majority of us making well over minimum wage, with successful careers, working as we choose and are not misclassified! AB5's vague and complicated legal landmines immediately scare away all my potential clients. #AB5 repeal today. ", Kimberly Walker: "I am a single mom, and many IC are single moms. Another stressful notion is the law backfired on Democrats and as a Democrat I sure don’t like to see people be upset with them, specially at this crucial election year. The law does not understand how the translation industry works. And it’s only Tuesday. It is committed to diversity and independence and is dependent on donations from people like you. I have registered as a company LLC, got a tax ID number, yet they don’t want to sign contracts with many folks whom reside in CA. 12/31 she got a letter from our NY-based parent company that she can no longer be hired as she is in California, and AB5 makes doing business with contractors here too dangerous. NONE of these disciplines are currently exempt under AB5, so it's now illegal for us to pay anybody this way. Clients are suddenly refusing to hire my BUSINESS and instead forcing me to file as w2 employee, deducting payroll and other expenses I already pay for under my business, causing me a nightmare of work in reassuring them they won’t get sued if I can just invoice them normally like a business. The clients decided to record elsewhere due to AB5. I teach art and provide support for local projects as an IC. How dare you use the shooting of civilians by police as a political weapon to defend your misguided and disastrous law that has robbed thousands of Californians of their right to earn a living with dignity, respect, and independence. Why? The mandatory S-corp, etc is just too much for most of those in this field. He plans to turn to people outside CA or even outside US. I am 66 on SS. I lost the career and relationship I was building with a content writing company and making far above minimum wage with. Ditto small claims judges. Every now and then we’ll have a 1,000-person event. I have seen many proposals for alternatives to forcing those who wish to remain independent into a traditional definition of employee, and these are worth considering. I’m just a middle class guy trying to feed his family...", Traci: "@JoeBiden and @SenSanders need to stop emailing me for $. AB5 has really rattled her community. Not quite music related but some of the same tools are involved in my craft and I live a similar kind of life inside of the gig existence. As we’re seeing in the pandemic, that flexibility is everything. We are a single income family as I support my husband as he goes to graduate school. The board is stressing about AB5, we don't have a lot of extra cash. #AB5 is taking away my choices & livelihood & I might lose everything. My employer broker is forcing me to go W2 now and I can’t deduct much unless my employer reimburse me for my expenses .What a joke . The CWA Union takes questionnaires from candidates vying for their support. We gross less than a million a year and net a fraction of that. ", JoBeth McDaniel, author at ASJA: "I spent a large chunk of 2019 working on a book, then learned from IP attorneys that book publishers are quietly blacklisting CA authors bc of #AB5. The average age of a CA appraiser is 63 yrs old. Now my clients that I've had for years don't want to give me too much work because they'd have to hire me as an employee and cannot afford it. I retired just after the first great newspaper layoffs happened. I am an independent contractor and can work at home while my little ones go to bed or are in school. I’ve done payroll for my dad’s smallbiz. I am an independent nurse educator with my own business partnership that received work through another “education” company. ", Marisa: "I just moved to California from the east coast. Are you serious? I need to work with a subcontractor, but according to #AB5 I have to hire them as an employee to do this 4-hour job. My band is now officially shut down and on hold until AB 5 is repealed or we get an exemption. ", Cecily Whiteside Martino: "I am a writer editor for website copy. Why should realtors be exempt when we work with them hands on and are commissioned This law is trying to force our industry to work for the big corporations I feel it's unconstitutional. I already knew I can't cover rent beyond this month. All my DJs are independent contractors with their own DJ companies. Michelle Mears, reported by KUSI News: "Michelle Mears has been a freelance journalist for 20 years. “They don’t have the budget for full-time employees and they need contractors, and I need flexibility. Perez and his girlfriend decided California is no longer a viable place to live. Been here since 1975. I received cut-off notices from my clients just before Christmas, and have already lost most of my livelihood overnight. Hell, no. There is already a scarcity of qualified interpreters. We've spent about 2500 this far in legal fees on this. ", Jason Smothers: "Real estate agents were added to the exemption list but not real estate appraisers. This could put me out of business. My only recourse is not to work on anything that requires hiring anyone for a month and hope and pray this mess gets sorted out. Because of Covid-19, I have found myself out of work since March 2020, but even when more dental offices are able to reopen and patients feel comfortable enough to see a dentist again, the lab I contract for may not be able to afford to hire me back as "an employee." If you’d like to work with me or other amazing faculty, feel free to reach out to us through here! No one is making us W2 employees. We are genuinely afraid we may not be able to pay for our mortgage or daughters preschool if people continue to stop hiring him individually or his band as freelance musicians. ", Dave Johnson: "Thanks to you, @GavinNewsom and @LorenaAD80, I live in constant fear of paying my rent because #AB5works by erasing the income of previously self-sufficient, successful professionals. I don’t need another sign to tell us that we are no longer welcome in our state. ", Marsha, tweeted by Kevin Kiley: "#AB5stories, Marsha: "I lost my job of 12 years as a medical transcriptionist because of #AB5. They will need to hire more underwriters, claims adjusters, administrative staff, will need to develop updated claims management and premium audit processes, all of which will cost money. Yes, a third party to a third party we never met or engaged with who worked one day and we cut a $296 check for. That said, we are still able to contract companies. I just wanted to pop in and tell you I was talking to a composer friend who’s already lost 1/3rd of his projected 2020 income due to AB5. If it weren’t for wellness and music, I wouldn’t have made it thus far. This is unacceptable. #AB5 bans all freelance video/audio work - unconstitutional, ridiculous, unAmerican. This is destroying the care we provide and our livelihood. I can’t work for ad agencies or digital marketing agencies now. This method of earning income for myself is built on my ability to control the hours in my day, when I do my work, and how I do my work. ", Karen Garrity: "I am a cellist and music contractor. I ran LA's number one weekly burlesque show for 12 years and now I sit home writing my elected representatives begging for the right to work. Now, I can't do it. ", Katrina Jayne: "And I urge YOU @JoeBiden to take the time to speak with the event industry so you can learn about the realistic & devastating impact that AB5 is having on our industry. it did nothing to protect "gig workers" and classified ALL freelancers as gig workers. Folks keep saying that hairstylists are exempt. My small writing gig was helping us to pay a portion of uncovered medical expenses. I am sure he will proceed with care and diligence in this role. I’ll make sure to inform everyone that after having a successful business for 16yrs you sent the order to destroy it. Die keynesianische Ökonomie wurde vom Ökonomen John Maynard Keynes gegründet. ", Dakota Sottosanto: "I don’t see how anyone in the wedding / Event Industry can commit a vendor 6-18 months in advance and call them an employee even if the contractor is in a similar line of work as the Business provider. It’s a rap song/video with intellectual substance that follows this premise: John Maynard Keynes and F. A. Hayek, two of the great economists of the 20th century, come back to life to attend an economics conference on the economic crisis. ", Isobel Gardner: "People will die from #AB5 Im a licensed mental health professional I had to let go of 5 of my 20 patients when I was forced to quit my part time IC job at a clinic and start a competitive private practice next door. Hayek rap video, and then came the even more vulgar and tasteless Keynes v. Hayek sequel video reducing the two hyperintellectuals to prize fighters. Now I have to hire magicians from out of state to join me because it is less expensive for them to drive from Las Vegas for a two hour gig than it is to have PIT workers comp and UI taken from their checks. This was back in January. Round 2 of the great economics smackdown is now available on video. All of these are write offs that I depend on to stay in business. ", Breezy Salazar: "Yesterday I quit a career I spent a decade building, thanks in large part to #AB5. Stopped by MA's anti-IC law, the model for CA's #AB5. While not my primary job, it does make up 10% of my annual income and was vital in maintaining my family when my husband was laid off in 2013. ", Isis Bolaños Rivera: "As the owner of a small language service provider I am in the same boat as you guys with AB5. That love turned into a passion and then a career. ", Shonna, tweeted by Kevin Kiley: "#AB5stories, Shonna: "I had to close my company of 10 years due to the #AB5 law! I suddenly lost my contracts with agencies throughout the country and down to near nothing job. AB5 is making it more difficult for me to do so which means I can’t scale my business because I can’t afford to hire employees. John Maynard Keynes and Friedrich August Hayek were two prominent economists of the Great Depression era with sharply contrasting views. It's expensive to market yourself to be found, and now thanks to confusion about a poorly written and unnecessary law campaigned for by a Assemblyman on a personal/ big union funded mission I'm out that money. A proposal so absurd, even Alexandria Ocasio-Cortez slammed the idea. Positioning myself as an S-corp or LLC to jump through hoops for this law will cost more than it would benefit me. #americanswithdisabilitiesact. There really is no guidance that I've seen on how to proceed. #RepealAB5", Seth Fischer: "Sad to announce that due to AB5, @writingworkshopsla is shutting its doors. While their philosophy and written works are approaching the century mark in age, most of what they taught and debated has tremendous relevance in … Lorena talks in platitudes and panders to big union donors while crushing independent biz.". We met and negotiated terms. I work for some companies one a year. ", Lorri: "Independent court and deposition reporters! Another dream stunted. ", Claire: "I am a translator and work as an independent contractor for many years, for only one company. Fear the Boom and Bust: Keynes vs. Hayek - The Original Economics Rap Battle! I'm devastated and feel fortunate to have found this group. economÍa lomce ies el pla. ", Colleen Craig, The Mortgage Ninja: "I've been in the mortgage business for over 30 years. ", Jan Marie: "Online ESL teachers. We have a few writers in CA making 5 figures with us, and their state just ruined that. My blind friend is freaked. But it’s hard to be a freelancer, and #AB5 makes things 100 times more difficult. The ripple effects of AB5 are astounding. My work as a Freelance Designer does not pass the “ABC test”, While I negotiate my fee and can negotiate my time as well, as a trained professional, I know what is needed and expected of me as a designer and there are dates and times I must attend. ", Margarita Reyes: "The rhetoric "they" use is an attempt to demonize us & validate THEIR cause. This agency provides all of the ASL interpreters for LAPD, City of Los Angeles, DCFS, etc... (1k plus jobs a month) there is already a SEVERE shortage of us.The 800 number quoted only includes certified interpreters. Several of my clients won’t be able to afford my new private fee. I've written it every week for over three years. I wonder if lawsuits generated by this specific shortage will be what finally makes the difference. You’ve made enemies out of a lot of people. As a result of AB5 my clinic will only hire PsyD because they are exempt (for no other reason than having a more powerful lobby. There are hundreds of professions impacted but it seems to me it's hitting the arts pretty hard. The right to work as an individual wishes is a basic, foundational freedom which this law has stripped from us, making it impossible to provide for our families. Struggling to figure out what I'm going to do. ", Deborah: "Wow, that's messed up. Sometimes I'm the contractor, sometimes I'm the one contracted. ", AE Sanchez: "I am 65. ", Chris Colin Lopez: "In two weeks I will run out of money. Plus my fave client - a prod co in SF - they're now just driving down and shooting it themselves. ", Gina Peck-Sobolewski: "I’ve been in contact with our local reps and advocacy groups for mental health. I am freaking out due to not having much luck getting calls from places I applied for jobs and not hearing any good news for repealing AB5. Is that even possible? lifestyle with your draconian orders. Temp Agencies don't really exist either. Unless things change, and change fast, my little company will go from "doing pretty good" to going bankrupt. Not anymore. Conservatives oppose price controls because they utilize government power to forcefully lower costs in a way that distorts the economically efficient behavior and natural incentives created by the free market. After its implementation, 263,720 households paid an alternative minimum tax in 2018. #AB5 will make me homeless. We have decided to offer our learning materials free of charge because we believe in an open, pluralist economic science that is available to everyone, worldwide. I do have an S Corp. If an estate sale company needs a specialist in antiques and collectibles, I can no longer be called to assist. Please contact your local state gov't reps, and be smart about it. Patient care. The facility is not in a position to make her an employee, which she doesn’t want to be in the first place. Of course, theme parks have money. ", Christine, tweeted by Kevin Kiley: "#AB5stories, Christine: “I am a freelance editor, and my two major clients dropped me because of #AB5. ", Elizabeth Grace Ankeny: "I'm a former teacher, now turned stay at home mom. In a tweet last night, Rep. Ocasio-Cortez criticized the bill for disproportionately affecting poor and working-class New Yorkers. ", Greg Edward: "AB5 negatively affects fly fishing guides in CA, because most of us are independent contractors. "", Marina, tweeted by Kevin Kiley: "#AB5stories, Marina: "I'm a certified court interpreter. The kids are heart broken! Mentioned that Uber/Lyft will leave CA at midnight. It's all gig to gig employment that is 1099 based. The office environment is also a bad fit and I don’t know if I can sustain it. The IRS has already eliminated Form 2106 expenses so this allows the IRS to tax us on gross wages instead of net wages. AB5 takes that choice away. Of course, many of these businesses aren’t allowed to operate, or have closed their doors due to lockdowns. #repealAB5 #AB5stories. We get paid for our areas of specialty. Does this make sense? ", Haley Crim: "I have been doing freelance writing since I finished my master’s degree in May of 2018. It’s a sledgehammer where a chisel was needed. My wife has a good job in Long Beach and I am facing moving out. And when I asked about the new employee handbook, she decided I was “behaving like a detective” and that made her uncomfortable. ", Marsha: "I lost my job of 12 years as a medical transcriptionist because of AB5. AB5 is drastically affecting us. It’s crazy to have to be employees of 5-10 companies now. She paid for podcast training and was prepared to hire independent contractors to help produce and edit her work. I just finished a "real person" casting at the end of 2019. I don’t know what to call them now, but I just fired all my tutors. No employees. In addition to funding the operating costs of buses and subways in NYC, Assemblyman Carroll also mentioned the legislation would incentivize New Yorkers to shop locally from small businesses in lieu of buying from major corporations like Amazon. I’ve gone from working 4 days/week to spend time with my kids to not knowing if I can make ends meet working 7 days”", Leah Cevoli: "#AB5 Got my first “we can’t hire you anymore” cause you live in CA email. I posted the announcement on this site a few days ago. Instead, these agencies and clients have chosen to hire our colleagues from neighboring states to manage the meeting operations here in California because they are not willing to deal with the risks of AB5. All the craft and cultural fairs are closed. I also lose my ability to write off my healthcare expenses. All the youth sports clubs are mostly non-profit and barely make enough to support the programs. I am hired for various production work that’s, also, nothing more than a 1099. We are working hard to navigate through the new CA #AB5 law, but as we are not a corporation that can pay band members on a payroll, we are unsure of how to proceed. Or require everyone to be S-Corps. I now have to hire a payroll company, pay payroll taxes, and hire a production manager just to handle the mountains of hiring and payroll paperwork. Lawmakers made no exemption for translators and interpreters; this destructive and nonsensical law takes "free" out of freelance. More if we take into consideration realtime captioners working remotely from other states, who now will not want to work with CA companies/consumers if they have to be made employees at a much lower rate, or will lose those work opportunities if hiring agencies in CA cannot afford to have them as employees, or go out of business due to AB5's restrictions. PERMALINK. Most are too old to understand what they need to do. And yes, they literally said that was why they were taking me off the project. The new law discourages that [because] I’d have to make them an employee. As we design and put together these events we create various themes and content that may or may not exist until we create it. I intentionally chose the freelance life because I didn’t want to be anyone’s employee but my own. AB5 is trying to take away that choice, to help the unions, not us. @KevinKileyCA for trying to help us. The ABCs of this do not apply to the way we work and putting that model on my 20+ year old business (with no time to plan) is truly crazy, the opposite of business sense. Meanwhile, 8 years of hard work building my business wiped away in 2 months. This was a great solution for those of us who wanted to keep our skills sharp but could no longer work full time as an employee of a transcription company. I choose to work in community theater and share my training and talents with these kids. If I’m lucky I will earn 1/3 of my income last year. ", Olga Barns: "I do have a full time job with W2 and all the withholdings, but being a single mom of a teenager always looking for extra work, since cost of living goes through the roof in California. Nor can I afford to hire through the new laws. Our lawyer told us to brace ourselves for class action (since unscrupulous attorneys are out there encouraging these unbeatable cases) because if that happened (some of our projects use 40+ support staff for one day only) and they audited us for the last ten years (which they do; we know someone with a small bar staffing company going through that now) we’d be crippled. Not going to be able to pay for it now, due to the evil AB5 and the lack of a speedy resolution in the courts and in the ‘progressive’ assembly. I couldn’t quote on a multi-million dollar contract because of AB5.”". The other half are independent contractors, and their sub-contractors, who provide engineering services for non-profit or university-sponsored radio networks, or individual stations around CA. But her world turned upside down when California passed Assembly Bill 5 (AB5), commonly referred to as the “gig worker bill”. ", Anonymous: "Theme parks often contract outside vendors (generally seasonal performers for various festivals, and specialty acts/skills for various needs) that can no longer hire these people in any capacity. We are being forced to figure out work-arounds in order to comply. Therefore, if you would like to be considered for any bookings with us, you will need to incorporate. In turn, it actually makes it very difficult for me to do any sort of work for these 30+ clients without them having to provide benefits for me. California seems set on destroying honest working people. My guess is that a lot of services will just disappear. They recently announced they are no longer partnering with new California independent contractors. I want the right back to live my life and run my own business the way that works for me and my family. That client was a potential $25k-$35k income source for me. My brokers told me I can’t get jobs from them. President and Chief Executive Officer During the campaign, Biden also pointed out that Vermont imposed a Medicare for All system which raised middle class taxes and had to be scrapped. I am a registered Democrat but your cynicism and ill-written legislation have cemented my long held belief that both parties are corrupt, outdated, and backed by special interests. Personal property appraisers go to people's homes and evaluate their items, may be a whole house, may be some select pieces, we quote our hourly rate before we start the job and we set the hours with the client before starting. AB 5 will rob my independence. Fixing #AB5 to help not only us but our community! (The accuracy of the representations signaled in its portrayal of Hayek as bald and Keynes with a full head of hair when in real life it was the other way around.) Appraisers also had to become licensed because of this. Lose lose situation. ", Linda Pescatore: "I tutor for an out of state company. Almost all (except pit musicians) are therefore grossly underpaid in hourly terms (the creative staff will put hundreds of hours into the full process of a show), but nobody minds because we're in it for the art. The financial stress AB5 is putting on my family, those in my profession and others in professions not on the exemption is astronomical! I have an LLC and EIN number and I am registered with the State of California. I can't wait for #SCOTUS to take up #AB5. Up until Jan 1st I was also an online transcriptionist earning approx $200 a month in much needed additional income. An article is $35 on average. The opportunity to be an employee has always been available to me, but I chose freelancing because it afforded me the opportunity to put my family first, before my job. ", Brian Natarte: "Suspending or ending #AB5 will help my 911 center utilize translation services for non English speaking victims and interpretive services for the hearing impaired. In this capacity (which is the majority of my earnings) I don't pass the B test. So, 1% gets relief at the expense of the other 99%. PERMALINK. It’s not clear to me. She began certifying yoga studios globally online. I hire 1099 individuals based on the need, and not part time employees. They battle each other with explanations why there is a boom and bust cylce in modern economies, why there are good reasons to fear boom and bust cycles and how to retaliate them. Please keep informing, educating, and spreading awareness! I'm 57 and working full-time in my occupation, is tiring. I’ve been working with them 5 years and they said they’re unable to use me until this mess is cleaned up for the music industry even though I’m an LLC. Overnight, Lutz went from earning $80,000 a year as a subcontractor to making $15 an hour—a barely livable wage in a high-cost area like Palm Springs. But it's complicated because everything works through their system. Without an exception, we may be forced to contract outside CA. It doesn’t make sense to be hired for 2 days a month. Btw, if anyone in the LA South Bay area, I'll be meeting with Al Muratsuchi in January, let me know who wants to join me. When she has excess business, or when we go on vacation, she offers business to two other pet-sitting companies, who cover her business for a short duration. The ad revenue just isn’t there. Neither my wife nor the facility want this, but on Monday, she has another meeting with the lawyers, who will no doubt intimidate the facility into compliance. Meanwhile, she had at least two other clients and was working f/t. Thanks a million! I pay all the required taxes and fees, insurance, banking fees, and have a business consultant as well. ", Will Kennedy: "Another musician friend lost 9 jobs today because of California's #AB5 law. It allowed me flexibility volunteer in my community and my children’s school, support our other businesses and provide additional income while also being able to care for my school aged son. I own Sora Creative Content www.soracreative.com. So much for bringing arts to the community and enriching people’s lives. This undermines the affordable healthcare act and affects the mental health of many. AB 5 will dismantle our industry's decades-old, proven independent contractor model and force us to adopt an unsustainable alternative which will drive many language professionals to leave our thriving careers and deprive limited English proficient individuals of their right to receive services in their primary language. #AB5. There are many artists and vendors who rely on big and small festivals for their livelihoods. Fear the Boom and Bust is a 2010 hip hop music video in which 20th century economists John Maynard Keynes and Friedrich von Hayek (played by Billy Scafuri and Adam Lustick, respectively) take part in a rap battle discussing economics, specifically, the boom and bust business cycle, for which the video is named. Posted by Alex Hendrie on Wednesday, December 9th, 2020, 11:10 AM With #AB5 repealed, I'd help them with doctor visits & help children who are now homeschooled. God help me. Exemptions won’t cut it. According to AB5, I have to employ my editor, even though he works out of his home six hours away, and I don't dictate his hours. He has worked as a media interpreter, an interpreter at film festivals, a subtitle translator, a voice-over talent, and as a technical translator. This means I would be leaving my 90 year old parents to try and get along without me. Check out the website and join the movement! One of my jobs is with interpreters for the deaf.....they are in the same boat! Watch this video on YouTube One thing is for sure the direction of the market, as highlighted in my book , and the training course is dictated by the business climate, which is dictated by the economic principles practiced during the era.