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Santa Claus becomes the latest victim of independent contracting restrictions

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Unread 12.15.20, 07:15 PM
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Santa Claus becomes the latest victim of independent contracting restrictions

12.15.20 05:22 AM

A recent article by Independent Women’s Forum’s Senior Policy Analyst Kelsey Bolar highlights an unusual victim of California’s new restrictions on independent contractors: Jolly Old Saint Nicholas. In 2018, California lawmakers enacted Assembly Bill 5, which redefined what constitutes an independent contractor. While many choose contracting for the flexibility and diversity of clients, AB 5 has mandated that these freelancers forego these benefits, pushing them into traditional office jobs if they do not meet the criteria specified in something known as the “ABC Test.” This robs contractors of the freedom they prefer and forces employers to offer costly benefits. Many employers can’t afford this change, and many contractors prefer the benefits of freelancing to the restrictions of being a traditional employee. With Christmas season well underway, entertainers, like seasonal department store Santas, will be hit particularly hard. As Bolar explains: The state law forces employers to hire people like Santa Claus, a man who traditionally works as an independent contractor,*as a formal employee,*with sick leave, health care, employment protections, and more. While the measure intended to help Santa and other freelance workers secure new benefits, the law is having the opposite effect, leaving him — as well as*thousands*of other California […]

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