SACRAMENTO- Today, Assembly Republican Leader James Gallagher (Yuba City) issued a statement in response to President Biden’s visit to California and latest proposal that will subject every employee in the United States to California’s disastrous labor policy set out in Assembly Bill 5.
“AB 5 is just one example of many laws that have broken California. Small and independently owned businesses are disappearing or leaving the state because of it. AB 5 is already going to cause more than 70,000 trucking jobs to be lost in our state. Making this a national policy will lead to further breaks in our supply chain, higher costs, and further stress on hard working Americans. California is not the model, it’s a warning.”
Yesterday, President Biden released a draft regulation modeled after California’s law that will complicate how independent contractors are classified. Hailed by California Democrats as a major accomplishment, AB 5 is criticized for driving down the income of many independent contractors and currently has more than 75 exemptions for specific professions because of its one-size-fits-all approach.