Economy

Assemblywoman Lorena Gonzalez’s AB 5 is Horrible for the Economy

Written by Nicholas Vetrisek

AB 5 is one of the worst bills in California history and is going to have an incredibly destructive impact on California’s economy. It may sound like a stretch at first glance, given all of the incredibly terrible legislation passed by California Democrats, but AB 5 really is that bad.

The bill will effectively end the “gig economy” and creates a draconian system for allowing freelance workers. There are three major requirements that each independent contractor must adhere to:

  • A) Is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact;
  • B) Performs work that is outside the usual course of the hiring entity’s business; and
  • C) Is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.

Under Part B, “Janitors could work as independent contractors only when they have contracts with companies not in the business of cleaning. Or a rideshare driver could work under a contract with Uber or Lyft only if those companies were primarily in the business of, say, selling vacuum cleaners.”

Naturally, Governor Gavin Newsom, in his infinite wisdom, chimed in by saying that the next step “is creating pathways for more workers to form a union, collectively bargain to earn more, and have a stronger voice at work.” Because nothing says worker’s rights like forcing them to join collectivist unions and using government power to literally put them out of work otherwise. 

Once again, the Democratic hacks in Sacramento have decided to punish hard-working people simply trying to earn a living in order to pander to special interests—this time being the labor union crooks that bankrolled their campaigns. We’re looking at you, Lorena Gonzalez. If you ever wonder why you can’t do freelance work in California anymore, you know who to thank.