AB 5 wrought havoc in the state by depriving tens of thousands of freelance workers the independent status and entrepreneurial opportunity they cherish. It created confusion about employment status for countless more, as hundreds of industries have sought exemptions from the law. It also has exacerbated supply chain issues due to California’s importance as a major shipping and delivery hub.
Freelancing has grown significantly in recent years, particularly through the pandemic. Today, more than 70 million Americans work as independent contractors, and federal data shows that the vast majority enjoy their independent status over traditional employment.
That is why Scott and Allen just introduced legislation to ensure that independent contracting is protected by federal law from bureaucrats like Su at the Department of Labor or the National Labor Relations Board who want to regulate it out of existence. The Employee Rights Act will protect joint-employment relationships like franchising and subcontracting, which are also under attack from Biden’s regulators.
In California, Su supported “sectoral bargaining” that allows a panel of bureaucrats to determine wages, working conditions, and other factors for every single business across an industry. She even created an armed labor police force and bragged about plans to arrest employers for violations of state labor code.