The Bill That Killed Freelance - YouTube

Channel: John Stossel

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You have to work 70-80 hours a week just to survive.
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Freelancers, like Uber drivers are being abused!
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Say the media.
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This driver has a three-year-old and one-year-old,
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but says he hardly gets to spend any time with them.
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I have to work like every single day,
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more than 10 hours, 11 hours
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So in California, unions pushed for a new law.
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Pass AB 5, help workers survive!
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It passed.
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It makes sure that the 1 million
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independent contractors in California
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get the wages and benefits that they deserve.
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Assemblywoman Gonzalez wrote the law
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that dictates millions of freelancers
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must now be hired as employees.
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“Gig Workers Win Historic Victory,” said the media.
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They’ll get benefits they need,
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like a minimum wage, overtime, sick pay.
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Politicians said this will help freelancers a lot.
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You're thinking you're helping us, but you're not.
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[unzip]
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Freelancers like Ari Herstand say,
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“This law hurts us.”
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This law was written to help the little guy.
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I’m a little guy. I’m a musician!
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[music]
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This could single handedly crash
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the California music economy.
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[music]
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I'll play a gig at a venue in L.A.,
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and I want to hire a drummer,
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a bassist and a guitar player, $200 each.
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Now, before, just cut them a check for $200.
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Now, I actually have to take that drummer,
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put him on payroll, W2 him,
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get workers' comp insurance, unemployment insurance,
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I have to pay payroll taxes.
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I also have to now hire a payroll company.
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[music]
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Not only that
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If he works for someone else
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[music]
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I'm going to have to be an employee
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of that music venue when I just play there once,
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once a year maybe.
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And so the music venues,
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we're going to start to see those shutting down.
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Having a good one?
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Yep.
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The law targeted rideshare companies
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like Uber and Lyft.
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Politicians clamed the companies abused drivers.
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But now many drivers are upset by the law,
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saying “I like being independent.”
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I don’t want a boss to tell me when or where to drive.
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I like making money making deliveries
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because I’m on my own schedule
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This is my favorite pastime right now.
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When I get into an Uber or a Lyft,
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I ask my driver, "What do you think about this new law?"
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Either they don't know about it
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or they're not in favor of it either.
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And I'm like, "Oh wait, why don't you like that?
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This law was written to help you?
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They're like, "Oh, well, I'm a recording engineer,
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I'm a photographer and this is my fourth side gig.
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I want to do this when I want to do this,
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and if now I'm an employee and I'm W2’d,
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they're going to dictate my hours.
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I don't want that.
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The reason I do this is for the freedom
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and the flexibility."
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But the lawmakers say “we know better.”
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When you have to take a side job,
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or a third gig, or a fourth gig, that’s not flexibility,
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that’s feudalism
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No, but we want to.
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You're preventing us
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from doing what we want to do.
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[Truck honk]
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It’s not something that we need or even want.
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You know?
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We want to leave it the way it is.
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The law upset truck drivers, too.
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Dozens of independents who own and operate
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their own trucks drove around the capital
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protesting the bill.
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Their protest won them an exemption from the law.
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These other politically connected professions
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got exemptions too.
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I've been trying to work out a cleanup bill
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to give the music industry an exemption from this law.
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Oh, you get an exemption then,
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and the truck drivers get an exemption.
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Right.
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Why is that good law?
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Exception for who's ever clever enough
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to get to the politicians.
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It's definitely not the solution.
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“Can you just write us out of this law and help us out?
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Here's some money for your next campaign."
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No, that doesn't seem like that's
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a way to kind of legislate.
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No, it doesn’t.
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but that’s how it’s often done.
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And now other politicians want to copy California’s law.
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New York’s already started to adopt it,
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New Jersey, Illinois, and the House of Representatives
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just passed a similar bill
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Because politicians say freelance work
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Is exploitive, abusive, it’s a scam, it’s a fraud
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I don't feel like I'm being taken advantage of by anybody.
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My choice, not yours!
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Neither do these dancers.
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The got in the assemblywoman’s face about it!
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I work at a club. I have a choice. I work at a-
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Who are you?
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When Gonzalez lobbied for the law,
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she didn’t mention jobs that her law might kill.
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My choice, not yours!
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But she did say
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It preserves our current union jobs.
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It's been rumored that the unions
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pretty much wrote this law
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and handed it to assemblywoman Gonzalez
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and said “Hey pass this.”
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AB5 is backed by labor groups who
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want to unionize gig workers.
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If you look at her top donor list,
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number one and two are unions.
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Help workers survive
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At first, the media were also
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big supporters of the law.
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“Gig workers’ win 
” said Vox
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But once the law passed,
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Vox Media cut hundreds of freelance jobs.
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They were expecting that all of these companies
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were going to reclassify their contractors,
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thier independent contractors as employees.
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In reality, what's actually happening
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is they're just letting them all go.
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What do you have to say to those freelance journalists,
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those independent contractors,
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who were working and have now lost their jobs
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because of AB 5, your bill?
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First of all, it wasn’t a job, these aren’t jobs.
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These are freelance positions
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that may be 3 hours a month
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and it may be 300 hours a month.
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The arrogance of politicians!
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People chose these jobs.
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Freelancers like the flexibility.
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Politicians have no right to say
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all those jobs aren’t good enough.
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Gonzalez would not agree to an interview,
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and now that there’s backlash neither would the unions,
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or any of the 75 law professors, political scientists,
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and sociologists who signed this letter
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in support of the law.
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They're embarrassed that they made this huge mistake,
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that they supported something.
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They aren't taking it back.
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Well there are politics at play, unfortunately.
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No politician ever wants to admit
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he did something wrong.
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Exactly. No politician ever wants to admit
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that they did something wrong.
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I hope you learned something from this video.
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I learned doing these stories.
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