With more Americans freelancing than ever before, the future of freelance work is a key concern for some workers as the presidential election approaches. A recent Upwork survey, Freelance Forward 2020, found that 59 million Americans did some form of freelancing in 2019, up 2 million from the year before.
Many freelancers across the nation have been keeping an eye on headlines about AB-5. The law that took effect on Jan. 1, 2020 is an attempt to address inequities in the gig economy including the independent contractor policies of ride-sharing companies such as Lyft and Uber. It assumes that every worker in the state is an employee unless employers can prove otherwise using the rigorous “ABC test” it is based on.
The B-prong of the test says that to be considered a contractor, a worker must perform work that is outside of the usual course of business for the hiring company — making it harder or impossible for many freelancers to work for clients in their own industry. Similar measures have been considered in other states, including New York and New Jersey, so far unsuccessfully.
A California Appeals Court has been hearing arguments this week by lawyers for Uber and Lyft as they try to overturn a lower court ruling that said they had to reclassify their drivers as employees.
Many freelancers across the nation have been keeping an eye on headlines about AB-5. The law that took effect on Jan. 1, 2020 is an attempt to address inequities in the gig economy including the independent contractor policies of ride-sharing companies such as Lyft and Uber. It assumes that every worker in the state is an employee unless employers can prove otherwise using the rigorous “ABC test” it is based on.
The B-prong of the test says that to be considered a contractor, a worker must perform work that is outside of the usual course of business for the hiring company — making it harder or impossible for many freelancers to work for clients in their own industry. Similar measures have been considered in other states, including New York and New Jersey, so far unsuccessfully.
A California Appeals Court has been hearing arguments this week by lawyers for Uber and Lyft as they try to overturn a lower court ruling that said they had to reclassify their drivers as employees.