California’s Progressive Labour Legislation

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• Yup, because the NY Times simply wants to get some WORK done and does not want to give the writer a JOB, with a mandated "living wage," paid time off to help change diapers, gold-plated health insurance, and a union shop. Nor wants to be prepared to prove to California regulators that it didn't discriminate against illegal Mexicans with poor English-language skills. So Californians Need Not Apply. The Times editors will not wrestle with the implications because they have a swell new editorial in tomorrow's edition praising all those state policies.

• How does this not contravene the Commerce Clause?

  Buys popcorn.....

  • U.S. Constitution, Article I, Section 10: "No state shall...pass any...law impairing the obligation of contracts." If X and Y have entered into a legal contract, the State of California cannot set it aside (such as forgiving a student loan on behalf of the bank). There are many laws that specify that certain contracts are not legal, or legal only with certain defaults or certain mandatory contents. Assembly Bill 5 (now law) made illegal all temporary work contracts unless they include provisions that eliminate the benefit of temporary workers. I don't know how it can affect existing contracts, but nearly every state dictates wage&hours too.

• CA's law for journalists and many others is a pain in the rear, but writers can become legit in the eyes of the state by forming an S Corp or perhaps a LLC and so should be able to continue writing. It shouldn't be necessary, but it's not as though scads of general contractors, plumbers and electricians haven't already done so. I'm not certain why a publication that doesn't have an office in CA would be concerned about violating this law with CA based writers, unless we're getting into issues that if a web site comes up on a computer in CA then that is a publishing presence in the state.

  • The Supreme Court recently discarded its precedents that you have to have a physical "nexus" to a state to be liable for state sales taxes. I don't think it means that any website visible in California has to comply with all of California's laws and regulations. I think California employment law still applies only if the employment is in California.

    • One does wonder how this will affect Boris' proposal to tax Amazon. Somehow I'm sure the Supreme Court will come to a different conclusion here.

• Maybe this will be a blessing in disguise. If all these lefty hacks have to set up as a small business, they may learn something about the heavy foot of government. It may end up changing a few minds.

  A S-corp or LLC is pretty easy to set up. Then they have learn about having to pay both sides of Social Security and Medicare taxes (about 20% off the top). Then there's the franchise tax board (state income tax) and the IRS wanting quarterly tax payments. Oh, and having to get a business license from their local municipality.

  Then, if they are successful, they can have some politician tell them "You didn't build that."

  • That's felony rounding! It's about 13% off the top (about 8% of that subtractable on Form 1040), and indies have to pay it quarterly whether or not they incorporate. But your overall point is valid, and any additional required steps for an indie benefit temporary employment agencies, some of which will include you in their stable for a fee even if you arrange all your own work.

    PS - The Trump tax cut was favorable to indies. It was basically a business tax cut but let indies limit their taxation to the business rate, with outrageous rules to ensure that nobody changed their official status to take advantage of it.

• This is a long-running dispute.

  (1) As far back as Reagan, the IRS (which wants everyone in a "job") gave standards for self-employment; among others, that you must have three clients. (That's absurd - If you're good, one client will want all your time - and also ruinous by definition to those trying to enter the racket.)

  (2) The contractors who successfully sued Microsoft for unemployment compensation ended techie job-shopping at big computer companies.