California makes it still harder to business in a state that already has a horrible business climate. From Kelli Ballard at libertynation.com:
California used to be the dream place to live and work. With its range of landscapes, beaches, mountains, pleasant weather, and fertile soil, people flocked to the Golden State to make a better, more enjoyable life for themselves and their families. In days past, “California or bust!” could be seen on the sides of wagons as people rushed West to seek their fortune in gold. Now, however, it seems more accurate to say “Leave California or bust!” as many independent contractors find out that new Assembly Bill 5 (AB 5) could put thousands of owner-operated truckers and other drivers, such as those for Uber and Lyft, out of business.
Another one of Gov. Gavin Newsom’s schemes to come under fire, AB 5 makes it hard for companies to justify hiring independent contractors. In an op-ed for the Sacramento Bee, he wrote:
“Contributing to this imbalance is the misclassification of workers, where companies eager to save on labor costs identify workers as ‘independent contractors’ rather than employees. Workers lose basic protections like the minimum wage, paid sick days and health insurance benefits. Employers shirk responsibility to safety net programs like workers’ compensation and unemployment insurance. Taxpayers are left to foot the bill.”