The vast gig economy is about to change and although it is only taking effect in California, the leader in laws regulating employment, is often followed quickly by other US states. So, how does this affect YOUR business? Californian law expert, all-round superwoman and self-confessed badass, Emily Baker is all over it. She explains how these new laws will affect you and your use of US-based contractors. “Even if you don’t live in California, this will still apply to other US states soon as these laws will likely be making their way across the country, once the process is streamlined,” Emily said. If your business is Australia, for example, and you use freelance workers in the US, then the bill means you will be liable to pay state
taxes for that worker. In September of 2019, Governor Newsom signed Assembly Bill (AB) 5 into law. The new law addresses the “employment status” of workers when they are claimed to be an independent contractor and not an employee. The bill could require Uber, Lyft and many other ‘gig’ companies to treat workers as employees, with all of the benefits of an employee. Why? “Assemblywoman Lorena Gonzalez, the Democrat who authored the bill, said it is designed to stop businesses from gaming the system by misclassifying workers.Federal and State governments believe that freelancers are being taken advantage of from big scalablemagazine.com
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