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On April 14, 2020 over 150 economists and political scientists in California published an open letter to California Governor, Gavin Newsom, and the California State Legislature asking them to suspend Assembly Bill 5 (AB5). AB5 is the historic law passed in 2019 which...read more
Five years ago, in an article for Workforce Magazine, I wrote about the need to create a third class of U.S. workers. This “Quasi-Independent Contractor (IC)” would better fit the economy and reality of modern times. A new class of worker that lays somewhere between a...read more
A recent research study by the Hinge Institute, reports that professional service organizations grew faster in 2019 than in the last five years yet they remain threatened by new competitors, commoditization, talent shortages and changes in buyer behavior. If you’re...read more
In a recent High Growth Study by Hinge Research Institute, 42% of consulting firms surveyed stated that NEW competition is a top threat. 40% said that the shortage of top talent was among their top five challenges. These pressures illustrate the complex forces that...read more
As we expected, after the Dynamex decision in April 2018, and the passing of AB5 in that same state in September 2019 other states are following California’s lead in narrowing the eligibility requirements for workers to be treated as independent contractors (ICs)...read more
When you begin to examine the business tax implications of California’s AB5 law, it’s easy to make things complicated. We’d like to simplify them. A quick recap First, though it’s been just over a month since California Governor Gavin Newsom signed Assembly Bill 5...read more
For the past several months, we have been commenting on AB5, California’s new law that codifies the Dynamex ruling and fundamentally changes the way that Independent Contractors are engaged in the state. Since its passage there have been a lot of opinions about what...read more
Chinese general and philosopher Sun Tzu said, “If you know the enemy and know yourself, you need not fear the result of a hundred battles.” AB5 may not be an “enemy” per se, but it is an unclear piece of legislation that has many people up in arms. As a new law, we...read more
California’s Assembly Bill 5 (AB5) is no longer a threatening myth swimming in a murky sea of “what if’s.” The bill has been signed into law, effective January 1, 2020, and it’s real enough to take a bite out of businesses who aren’t prepared to address its...read more
AB5, the bill that sprang forth from the jaws of the Dynamex decision, and that will change the test for worker misclassification as well as the landscape for independent contractors in California, is poised to land on the Governor’s desk for signature next month....read more