Reply
cancel
Showing results for 
Search instead for 
Did you mean: 
Reply

Re: Headline: New California Law...Will Destroy Freelance Writing Industry (?)

Community Guru
Miriam H Member Since: May 16, 2017
11 of 84

Trasie S wrote:

Please see my latest comment on this thread. 

 

AB5 requires that clients and companies convert all California freelancers to W2 employees on January 1. I have put the details in the latest comment, but the correct answer is that for us to legally continue to use the platform after January 1 we need to become Upwork employees and receive W2 income from Upwork Payroll. 


I did see your comment, however I don't agree with your assessment (again, not a lawyer). 

Active Member
Trasie S Member Since: Sep 22, 2015
12 of 84

I have a meeting with a lawyer tomorrow to try to make real sense of this all. 

 

What I wasn't aware of before I started digging is that what I wrote about Upwork offering clients and freelancers its Upwork Payroll W2 services has always been part of its offerings to help clients correctly classify the freelancers they hire. This wasn't a reaction to AB5, but a long term policy (even before AB5, California had pretty clear laws governing the difference between an employee and a contractor). 

 

Community Guru
Miriam H Member Since: May 16, 2017
13 of 84

Trasie S wrote:

I have a meeting with a lawyer tomorrow to try to make real sense of this all. 

 

What I wasn't aware of before I started digging is that what I wrote about Upwork offering clients and freelancers its Upwork Payroll W2 services has always been part of its offerings to help clients correctly classify the freelancers they hire. This wasn't a reaction to AB5, but a long term policy (even before AB5, California had pretty clear laws governing the difference between an employee and a contractor). 

 


Yes, I was aware of the W-2 offering from Upwork. If you are able to share any insights, post meeting, that would be great. The fact remains, for most freelancers on this site, Upwork is an escrow agent. Their normal course of business is connecting freelancers with clients, by that measure I would think any work I perform effectively passes test 2. Now, for larger enterprise clients, I have a different view.

 

Speaking for myself, so many of  my projects have been short term and the majority (in my non-legal opinion) do pass the second test (i.e. not in the normal course of business - I provide technical/business writing) - I don't see how I would ever be an employee. Furthermore, I work with a lot individuals and entrepreneurs, who are paying out of pocket.   It sounds like you and I may have different clients/backgrounds.

 

All this said, I am fully prepared that large companies, who want to work with me, will only do that via W2, which is fine with me. I recall from this thread, your prespective is different. 

Active Member
Elizabeth R Member Since: Sep 2, 2017
14 of 84

Do you have any more details, post-meeting? I just received an email from Upwork about this as well. I heard about the law earlier this year but kind of brushed it off, as most of my fellow freelancer pals in California didn't seem concerned and I don't really understand the law myself.\

 

Thanks so much!

 

Elizabeth 

Active Member
Greg C Member Since: May 2, 2017
15 of 84

I came across this and believe that many freelancers on upwork should be covered by this exemption:

 

Professional Services Exemptions

AB-5 provides carve-outs for the following “professional services:” (1) marketing professional; (2) human resources professional; (3) travel agent; (4) graphic designer; (5) graphic artist; (6) fine artist; (7) freelance writer; (8) barber or cosmetologist; (9) esthetician; (10) electrologist; (11) manicurist; (12) payment processing agent; and (13) IRS licensed tax professional.

To qualify the professional service provider must:

  • Have an established business location (may be home);
  • Have any required business license or occupational license;
  • Have the ability to negotiate rates;
  • Maintain the ability to set hours outside of project completion dates;
  • Engage in the same type of contract work with other companies, or must hold themselves out to other potential customers; and
  • Exercise discretion and independent judgement in their work.

NOTE: There are additional restrictions. For instance, cosmetologists must set their own hours, set their own rates, select their clients, schedule their own appointments, process their own payments, be paid directly by their clients and keep their own book of business.

 

https://www.nfib.com/content/legal-compliance/labor/understanding-ab-5-californias-new-independent-c...

Community Guru
Will L Member Since: Jul 9, 2015
16 of 84

Has anyone in California heard anything about the purported new law in this article?

 

https://pjmedia.com/trending/new-california-law-targeting-uber-and-lyft-will-destroy-freelance-writi...

 

 

Community Guru
Petra R Member Since: Aug 3, 2011
17 of 84

Will L wrote:

Has anyone in California heard anything about the purported new law in this article?

 

https://pjmedia.com/trending/new-california-law-targeting-uber-and-lyft-will-destroy-freelance-writi...


Some opinions here

Community Guru
Miriam H Member Since: May 16, 2017
18 of 84

Petra R wrote:

Will L wrote:

Has anyone in California heard anything about the purported new law in this article?

 

https://pjmedia.com/trending/new-california-law-targeting-uber-and-lyft-will-destroy-freelance-writi...


Some opinions here


I clicked and saw I had commented on the thread you shared..saves me some typing Smiley Happy

Highlighted
Community Guru
Miriam H Member Since: May 16, 2017
19 of 84

Will L wrote:

Has anyone in California heard anything about the purported new law in this article?

 

https://pjmedia.com/trending/new-california-law-targeting-uber-and-lyft-will-destroy-freelance-writi...

 

 




 

 


 Out of cursoity, I read the article, I'm not sure where he is getting this 35 submissions per week. Does that mean to one publication? It wouldn't surprise me if there is a threshold by company, and already many companies in CA (I live here) will put you on W2 if you work a certain amount for them.  

 

I would really be interested to see some legal interpretations of this new law and as stated in the other thread, i am 100% oppossed. 

Active Member
Sara J B Member Since: Apr 12, 2018
20 of 84

AB-5 actually has a limit of 35 articles per year for a publication. However, "publication" isn't defined. It's not clear if that would apply to the subsidiary or parent company and all of their subsidiary publications.

TOP KUDOED MEMBERS