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November 10, 2020 48 mins

Okay, here's what we know so far:

Prop 22 in California passed.
Joe Biden looks like he'll be president.
The Senate is going to be close - maybe slight control for the Republicans.

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So the elections are done (okay, some of the counting isn't)

What does that mean for us?

Gig companies can continue to use contractors in California, but I believe that provisions in Prop 22 could put them at risk for a misclassification ruling under the IRS or Department of Labor.

Joe Biden is pro AB5 type legislation nationally, but balance of power in the Senate will probably keep that from happening.

Biden will probably appoint more labor friendly leadership at Department of Labor which could have an impact.

As long as you can be in charge, be in charge. If things are on their way to changing, use this time to get ready for that change.

Articles referenced:

Episode 97 associated blog post.

A list of articles on our site when AB5 was passed

Bloomberg article stating California contractors can still sue under AB5

Link to IRS Publication 1779

Entrecourier Article pointing out extra controls allowed in Prop22

Payup article on extra controls allowed under Prop 22

Article in the Hill about Gig Companies wanting to take Prop 22 national

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