State Senator Moorlach gets to say "I told you so!" over California's attempted end-run around recent changes to federal tax law.

Sen. Moorlach calls on governor for emergency suspension of AB 5

Coming on the heels of this morning’s dire jobless claims report, State Senator John M. W. Moorlach called on Governor Newsom to enact an emergency suspension of AB 5, the law enacted last year that bars Californians from operating as independent contractors.

“This morning’s 6.65 million jobless claims report signals a nationwide economic crash of apocalyptic proportions,” said Senator Moorlach. “In this crisis, Californians must have every possible opportunity to earn a living, and that includes as independent contractors.”

“When the legislature enacted AB 5 last year, they effectively put tens-of-thousands of Californians out of work by denying them the opportunity to work as individual business owners and independent contractors, even though this has been a customary practice condoned by the IRS for decades,” continued Moorlach. “Rarely has a democratically-elected government enacted such an extreme and repressive law as AB 5. Now, in the midst of the coronavirus crisis, we must immediately repeal this bad law so that all Californians are free to work and earn a living.”

“There is a sense that this crisis may fundamentally change how people work, yet AB 5 prohibits independent contractors – the very people who, ironically, generally work from their homes to earn a living,” said Moorlach. “It was a bad idea to take away people’s livelihoods when the economy was strong, and it’s a devastatingly bad idea to continue enforcing this law in the middle of a national health and economic crisis.”

“Governor, it’s time to give California families an early release from AB 5.”

This article was released by the Office of Senator John Moorlach.