The gig economy is booming and allowing corporations to take advantage of workers and get around costs by considering “employees” as “independent contractors.” That distinction allows businesses to get around state and federal labor laws as well as not provide some benefits.

The California state Assembly has passed AB5 which now does to the state Senate. It impacts thousands of “independent contracts like Uber and Amazon drivers, tech companies, and possibly comic creators.

The legislation expands upon a California Supreme Court case decision last month known as Dynamex Operations West v Superior Court. The ruling, and the bill, instruct businesses to use the “ABC test” to figure out if a worker is an employee.

To hire an independent contractor, the worker must not meet all three of these conditions.

(a) is free from the company’s control,
(b) is doing work that isn’t central to the company’s business, and
(c) has an independent business in that industry.

If all three aren’t met, they have to be classified as an employee.

Comic creators aren’t always clear from the company’s control. They are absolutely central to the company’s business, but many have independent businesses in the industry. One of these conditions is not met. It fails the court, and legislative, mandate. One has to look closer at the languageof the legislation and its exemptions. An example are professionals who rent space like a Doctor or Hair Stylist.

The legislation does exempt “those performing work under a contract for professional services”. There would likely not be impact to the industry as comic creators would likely fall under this exemption. Publishers will need clarification. Due to the court’s ruling they should seek it out anyways.

It’s all in the contract and working relationship between the two. That will be a tight line those in charge will have to walk.

This legislation and decision is stricter than federal guidelines which has ever changing guides and opinions.

If a company is found to violate this, they would be liable to reimburse local agencies and school districts for mandated costs.