New Jersey's worker misclassification law will hurt many it intends to protect

As a former California resident with many friends still there, I watched with horror as Assembly Bill 5 (AB5) was passed. The bill, which takes effect January 1, 2020, reclassifies many independent contractors as employees. The upside is that some workers in this gig economy will gain employee benefits and other worker protections. The downside is that my California-based freelance writer friends and independent contractors in other fields already are having clients cut back their work or eliminate it altogether as a result.

I saw what was happening in California and felt a sense of relief that I was no longer living there. But that was short lived, because this week I found out that the New Jersey legislature is fast tracking legislation S4204/A5936 to classify workers as employees in a more stringent way than in California. California’s AB5 bill limited its freelance writers to 35 submissions per client, before they had to become an employee. Fearful of major financial penalties and legal confusion, some companies are telling California writers they can no longer work with them.

And now we see the writing on the wall with the current proposed New Jersey Senate and Assembly bills. There is no 35 submission limit for New Jersey writers (albeit an amount California writers argue is too low). It’s any one job we do for pay.

It’s also not just freelancer writers affected. It’s yoga teachers. Tutors. Graphic designers. AAA roadside service drivers. Truck drivers. Photographers. PR/marketers. A popular transcription company using independent transcribers just told its California freelancers their accounts will be deactivated later this month. “Our unfortunate conclusion is that California is no longer a viable place to do business,” the company told the freelancers. And this week they confirmed that they’re no longer accepting freelance applications in New Jersey, due to “regulatory changes.”

Please read the rest at TAP into Westfield.