Search
  • Ari Goldfarb

California Assembly Bill

As of January 2020, California’s AB5 known as the gig worker bill will go into effect. This bill requires companies to reclassify independent contractors as employees. Its primary focus is on companies like doordash, Uber, and Lyft and will require these businesses to undergo a three-pronged:


1. The worker is free to perform services without the control or direction of the company.

2. The worker is performing work tasks that are outside the usual course of the company’s business activities.

3. The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.


What does this mean for the California workforce? For one it guarantees more of these gig economy workers will receive at least minimum wage for their work, along with other required employee benefits, like paid time off, health insurance, and unemployment insurance. However, with these added benefits comes to expectations for the workers.


While Uber, and Lyft have granted flexible work hours to drivers in the past, these companies now have the opportunity to increase their expectations for their workers. This could include a standard work schedule. The cost alone of paying all their drivers could end up bankrupting the ridesharing companies, or greatly decrease the accessibility of new drivers to enter the workforce.[2]


Overall thoughts, while the bill is meant to hold gig economy companies responsible for their workers, there’s a chance it will deplete the primary appeal of working for these companies in the first place.



Any opinions are those of Goldfarb Financial and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected.

[1] https://www.investopedia.com/california-assembly-bill-5-ab5-4773201


[2] https://www.usatoday.com/story/news/politics/2020/01/21/california-lawmaker-promises-refine-ab-5-amid-lawsuits-confusion/4505702002/

0 views

(716) 842-0145

295 Main St Suite 914 Buffalo, NY 14203

900 Camp St Suite 4C5 New Orleans, LA 70130

Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact your local Raymond James office for information and availability. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James Financial Services is not affiliated with New Orleans Chamber of Commerce.

https://brokercheck.finra.org/

Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC Privacy Policy</a/<a

Goldfarb Financial is not a registered broker/dealer and is independent of Raymond James Financial Services, Inc. Investment advisory services offered through Raymond James Financial Services Advisors, Inc.

Certification awarded by an independent nonprofit organization B Lab. This certification recognizes businesses that meet rigorous standards of social performance, accountability and transparency. The 2019 Best for the World lists are determined based on the verified B impact Assessments of Certified B Corporations. The B Impact Assessment (BIA) is a free Online tool designed to comprehensively measure the positive impact that businesses generate for their communities, customers, workers, and environment; administered by the independent nonprofit B Lab. Criteria can be found at https://bcorporation.net/2019-best-for-the-world. The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of the firms’ or the advisor’s future performance. Neither Raymond James nor any of its Financial Advisors pay a fee in exchange for this award/rating. B Impact and Best for the World is not affiliated with Raymond James.

We receive, collect and store any information you enter on our website or provide us in any other way. In addition, we collect the Internet protocol (IP) address used to connect your computer to the Internet; login; e-mail address; password; computer and connection information and purchase history. We may use software tools to measure and collect session information, including page response times, length of visits to certain pages, page interaction information, and methods used to browse away from the page. We also collect personally identifiable information (including name, email, password, communications); payment details (including credit card information), comments, feedback, reviews, recommendations, and personal profile. When you conduct a transaction on our website, as part of the process, we collect personal information you give us such as your name, address and email address. Your personal information will be used for the specific reasons stated above only. We collect such Non-personal and Personal Information for the following purposes: To provide and operate the Services; To provide our Users with ongoing customer assistance and technical support; To be able to contact our Visitors and Users with general or personalized service-related notices and promotional messages; To create aggregated statistical data and other aggregated and/or inferred Non-personal Information, which we or our business partners may use to provide and improve our respective services; To comply with any applicable laws and regulations. All direct payment gateways offered by Wix.com and used by our company adhere to the standards set by PCI-DSS as managed by the PCI Security Standards Council, which is a joint effort of brands like Visa, MasterCard, American Express and Discover. PCI-DSS requirements help ensure the secure handling of credit card information by our store and its service providers. If you don’t want us to process your data anymore, please contact us at adam.goldfarb@raymondjames.com or send us mail to: 295 Main St Ste 914 Buffalo, NY 14203. We reserve the right to modify this privacy policy at any time, so please review it frequently. Changes and clarifications will take effect immediately upon their posting on the website. If we make material changes to this policy, we will notify you here that it has been updated, so that you are aware of what information we collect, how we use it, and under what circumstances, if any, we use and/or disclose it. If you would like to: access, correct, amend or delete any personal information we have about you, you are invited to contact us at adam.goldfarb@raymondjames.com or send us mail to: 295 Main St Ste 914 Buffalo, NY 14203.