Mike Garcia, a Navy veteran and new face to Republican politics, has
defeated his Democratic opponent Christy Smith in the special election
for the 25th Congressional District, thanks in no small part to the
strong support he received from California's freelancers and
self-employed.
In the weeks leading up to the special election, Assemblywoman Smith
doubled down on AB5, and as a result she lost support on both sides of
the aisle. In an interview, Smith claimed that the self-employed do not
pay taxes, accusing independent contractors and their hiring entities of
tax evasion. In fact, freelancers pay the self-employment tax, a 15.3%
tax that funds Social Security and Medicare, in addition to federal and
state income taxes. In a subsequent interview, Smith ignored the urgings
of her constituents and continued to insist that the self-employed
"don't play by the rules."
Smith's unfounded and inaccurate comments laid bare her disdain for the
self-employed and played a major role in her defeat by Republican Mike
Garcia. California's freelancers, in turn, made their disdain for Smith
known at the ballot box, handing Garcia a full twelve-point victory over
Smith in a race that was expected to be close. Get the memo,
Sacramento! There is a direct correlation between a legislator's support
of AB5 and bipartisan voter opposition, and this correlation is only
growing stronger as more people become aware of the destructive effects
of AB5.
We are The People v. AB5, a nonpartisan grassroots organization fighting
for the freedom to freelance. We are freelancers, sole proprietors,
self-employed individuals, professional service providers, and small
business owners who are fighting for our livelihoods and our ability to
make a living. Five months into 2020, AB5 continues to inflict pain upon
our community. First, AB5 stopped 375+ professions dead in their tracks
on January 1, 2020. Then, the COVID-19 crisis began, and thousands of
freelancers who are following state and local guidelines by staying at
home remain unable to use their time, skills and internet connections to
generate income. Finally, the California Employment Development
Department has continued to weaponize AB5 by issuing audit notices to
small businesses throughout the COVID-19 crisis without so much as a
flinch notices which come with the threat of thousands of dollars in
fines and associated legal fees. The effect is that many businesses are
closing up shop and many professionals are considering leaving the
state. The damage to families and livelihoods is irreparable.
Like Smith, Assemblymember Lorena Gonzalez, the sponsor of AB5, has
repeatedly dismissed the concerns of freelancers and the self-employed,
instructing them to go talk to their local union about the possibility
of an exemption. And Governor Newsom, upon being asked in a news
briefing about jobs killed by AB5, replied that he wasn't sure that AB5
killed any jobs. Nor do the various "exemptions" offered by our
lawmakers solve the problem; the recently-proposed musician exemption,
for example, introduces at least a dozen new terms and definitions into
the Labor Code, none of which have been interpreted by the EDD or the
courts. The result across all industries is that more and more
out-of-state companies are issuing notices that they will no longer
contract with California freelancers out of fear of the expenses, fines,
and litigation fees associated with AB5. Californians cannot and will
not adapt to this new normal where the effect of needlessly complicated
laws is to effectively outlaw virtually all independent contract
relationships. There are over a million independent contractors spanning
375+ professions in California, and nearly all of them have had their
ability to earn an income affected by AB5 in some way.
Mike Garcia's victory is a victory for the independent contractors and
freelancers everywhere. Come November, California's self-employed will
not forget which politicians are responsible for AB5.
Company Name | Contact Person | Contact Number | Email Id | Website | Address |
---|---|---|---|---|---|
The People v. AB5 | 8182848373 | contact@thepeoplevab5.com | https://www.thepeoplevab5.com/ |
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