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California Assembly Bill 5 - Upwork Comment

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Community Guru
Miriam H Member Since: May 16, 2017
41 of 88

Jennifer M wrote:


The problem with them taking more taxes is that in a w-2 job you almost always get ridiculous amounts of money back from the IRS and this is *bad.* You're just giving the government money and trusting they will give it back. lol You want to cut even ideally in April or at the worst owe a little bit and pay them. When I was w-2, I'd get like $4000 back from the IRS (Bad) now that I'm 1099, I can control it and basically cut even. Last year I got $300 back.


That actually sounds like a withholding issue - not a W-2 issue.   Smiley Happy

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Community Guru
Jennifer M Member Since: May 17, 2015
42 of 88

Miriam H wrote:


That actually sounds like a withholding issue - not a W-2 issue.   Smiley Happy


yeah, I know you can claim like 5 dependents lol. But I always just claimed 1 like normal and would get thousands back.It started when I owned a home rather than renting.

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Community Guru
Christine A Member Since: May 4, 2016
43 of 88

DJ B wrote:

This is the biggest concern for me. Employers are going to be confused by the law and default to either hiring as W-2 or simply avoiding Caifornia-based freelancers altogether.

 


Yes, I do think that this is true, unfortunately. If I were a freelancer living in California, my bags would already be packed.

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Community Guru
Mary W Member Since: Nov 10, 2014
44 of 88

Could someone based in California please PM the email you received from Upwork?  I would like to send it to a client ASAP.

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Community Guru
Preston H Member Since: Nov 24, 2014
45 of 88

Or if a moderator could post a link to it?


Does not sound like a private thing. Sounds like something that would be useful to anyone working with California-based Upwork clients or freelancers.

 

As far as people leaving California goes... I read an article today saying that with the latest census data, California is going to lose at least one Congressional seat due to population loss.

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Community Guru
Preston H Member Since: Nov 24, 2014
46 of 88

Well, this is interesting... Some major companies are simply not going to comply with AB5...

 

Uber, Lyft, Postmates, Facebook and others are apparently going to skip this one...

 

Screen Shot 2020-01-04 at 6.10.27 PM.png

 

Screen Shot 2020-01-04 at 6.10.56 PM.png

 

Screen Shot 2020-01-04 at 6.11.21 PM.png

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Community Guru
Christine A Member Since: May 4, 2016
47 of 88

Interesting. What's the penalty for non-compliance? Presumably the bigger companies can afford it, or can afford to go to court. 

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Community Guru
Miriam H Member Since: May 16, 2017
48 of 88

Christine A wrote:

Interesting. What's the penalty for non-compliance? Presumably the bigger companies can afford it, or can afford to go to court. 


My understanding, again non-legal, the penalty only is an issue if a worker brings a lawsuit - i don't think there is any audit or monitoring, but I could be mistaken. 

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Christine A Member Since: May 4, 2016
49 of 88

Miriam H wrote:

Christine A wrote:

Interesting. What's the penalty for non-compliance? Presumably the bigger companies can afford it, or can afford to go to court. 


My understanding, again non-legal, the penalty only is an issue if a worker brings a lawsuit - i don't think there is any audit or monitoring, but I could be mistaken. 


It sounds like you're right. From the article:

 

"Gonzalez says she hopes city attorneys and the state attorney general will hold gig companies responsible if they do not comply with the law."

 

She hopes?

 

Also, this:

 

"If you can't hold [Uber and Lyft's] feet to the flames, and [the law is] affecting people that it really wasn't supposed to affect, then something needs to be changed — and quick."

 

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Community Leader
Nicole H Member Since: Nov 15, 2007
50 of 88

I read a news article somewhere with a quote from the Upwork CEO about this. They don't seem that concerned because they offer the W-2 option as well as the 1099 option. In fact, the CEO admitted they make more money off of W-2 jobs than 1099 jobs so it is in their interest probably for us to be classified correctly, unlike companies like Uber.

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