“This is what your clients will soon be thinking and doing under AB 5. It will change your consulting practice,” writes Walt Maclay, a successful business owner/consultant, in an email to this author. Maclay was following up on the presentation he gave to fellow consultants at a recent CNSV event on the unintended repercussions of AB 5 on highly skilled technology consultants. AB 5 is the recently signed law intended to protect so-called gig workers (e.g. Uber drivers).
In the above video, Maclay discusses real-world impacts of AB 5, such as the possibility that a sub-contractor may not have other clients, as required by the law. Maclay explains that he would have no way of verifying his subcontractors’ consulting status given non-disclosure agreements that clients often have with contractors.
One of the consultants in the audience points out the ambiguity of the “ABC” (for an explanation of the criteria to determine whether an individual is an employee, check out this link from the same CNSV meeting) test and how the definition of “B” often can be interpreted differently and that reasonable people could disagree on whether a person is an employee or a contractor.
Some highlights from the above interview:
Note: Viodi is a CNSV member