Senator John M. W. Moorlach (R-Costa Mesa) announced today that he has amended SB 990 to suspend AB 5 — the law enacted last year that prohibits many Californians from doing business as independent contractors.
“Californians should be free from the chains of this AB 5 nonsense,” Moorlach said.
Senate Bill 990 — the AB 5 Emergency Suspension Act — will allow tens of thousands of Californians to earn a living as independent contractors during this time of economic crisis caused by the global COVID-19 pandemic.
AB 5 converted numerous consulting, and related professions, from independent contractor status to common law employee status, thus causing many businesses who retain certain individuals, whose skill sets were not specifically carved out in AB 5, to lose their business relationships.
“Carving out certain industries shows a favoritism that should not be mandated in the state’s income tax code,” said Moorlach. “Therefore, AB 5 is technically flawed and must be subject to a serious pause button.”
Demand for unemployment insurance benefits in California has reached historically high levels according the state’s Employment Development Department (EDD). Millions of unemployed Californians could potentially earn more as freelancers than unemployment checks provide if SB 990 passes.
If enacted, SB 990 would immediately delay AB 5 until January 1, 2022.
AB 5 has negatively impacted thousands of jobs and industries, including:
- ride sharing
- food delivery
- design services
- single truck owner-operators
- interpreting/translating services
- occupational therapists
- home repairs
- catering event planning
- lab technology
- hair and nail salons
- social work
- behaviorist health
- pet grooming
- pool cleaning
- food/hotel franchises
“I’m going to continue to pound the table until AB 5 is suspended,” said Moorlach. “Senate Bill 990 is a critical piece of legislation that should be enacted if Governor Newsom fails to act.”