Earlier this year, California lawmakers and Gov. Gavin Newsom enacted legislation they promised would protect independent workers. Passed by the Democratic-dominated legislature, the law requires businesses to treat freelance workers like formal employees.
The goal was to prevent independent contractors from being exploited. In reality, it’s putting them out of work. Instead of complying with the new mandatory bureaucracy, businesses are severing ties with their outside talent and stories of websites and other businesses announcing massive layoffs are widespread.
What exactly does the legislation require of employers? Why are they choosing to release freelance professionals instead of making them actual employees? And what will happen once the real impact of this law is understood?
In this podcast, we discuss those questions and others with Rachel Greszler, research fellow in economics, budget, and entitlements at the Heritage Foundation.