The arts and entertainment communities in California have grown and flourished in the past few years. Part of this growth is attributed to being able to tap into a growing network of independent workers or contractors, who are collectively referred to as “freelancers.” While the gig economy’s growth and success are impressive, some issues may arise because of the AB5 law.
What is the AB5 Law?
According to legal professionals, such as John Branca, the creation of the AB5 law was to protect workers from being misclassified. Many employers were classifying individuals as independent contractors when they were actually employees to reap the tax benefits.
On the surface, this is a good thing for an individual. After all, working for a company should entitle you to receive benefits, and the state should collect all related tax revenues. However, as an example, influencers on social media may actually see more adverse effects from this new law.
Are You an Independent Contractor or Employee?
According to the AB5 law, there are three factors to determine a worker’s classification. According to this teat, the worker is assumed to be an employee unless the employer can demonstrate the following.
First, the person is free from the hiring entity’s direction and control related to work performance. Secondly, the person is performing work that is beyond the typical scope of the hiring business’s realm. Lastly, the person is engaged in some type of independently established business, occupation, or trade related to the work being done.
Taking the same example of influencers from above, whether they are or are not free of direction and control of the hiring entity depends on the contract that has been signed. Some brands dictate everything written or said by influencers, while others provide more creative freedom.
If you aren’t sure what you should be qualified for, working with an entertainment attorney may benefit. They can help clarify some of the gray areas and ensure you are getting what is deserved for the work you do.
How Do You Find an Entertainment Attorney to Help?
As you know by now, not all attorneys are created the same. It is a good idea to find and hire an attorney who has experience with cases similar to yours. This will help ensure you take the right steps to ensure you get what is deserved for the work you do. Being informed is essential for your career.
Author: Andy Quayle
Andy was born in the Isle of Man and currently lives in Pittsburgh.
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