#92 | AB5 Destroyed this NON-profit Opera House

Rideshare Rodeo Podcast

Uber Lyft Drivers and Gig Economy Workers Weekly News & Interviews: Today I have Gail Gordon on the podcast. Gail owns and operates a non-profit Opera Company in Los Angeles. I had Gail on the podcast in October 2020 and we discussed what had happened. Today, a year later, I have her back for an update on the effects of California AB5 on her NON-profit business. Unreal the damage this law has done!
*SEE DETAILS ON EXACTLY HOW THIS EFFECTS GAIL BELOW*

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**READ BELOW TO UNDERSTAND ABC TEST**

ABC test – B prong is impossible to justify for musicians.

(A) The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.

(B) The person performs work that is outside the usual course of the hiring entity’s business.

(C) The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed

Section 2775 and the holding in Dynamex do not apply to the relationship between a referral agency and a service provider, as defined below, under the following conditions:

(A) A person who utilizes a referral agency to contract for services from a service provider ex: Opera company using a “Contractor” to hires an orchestra for performances.

(a)Section 2775 and the holding in Dynamex do not apply to the relationship between two individuals wherein each individual is acting as a sole proprietor or separate business entity formed as a partnership, limited liability company, limited liability partnership, or corporation performing work pursuant to a contract for purposes of providing services at the location of a single-engagement event, as defined below, under the following conditions:

(1) Neither individual is subject to control and direction by the other, in connection with the performance of the work, both under the contract for the performance of the work and in fact.

(2) Each individual has the ability to negotiate their rate of pay with the other individual.

(3) The written contract between both individuals specifies the total payment for services provided by both individuals at the single-engagement event, and the specific rate paid to each individual.

(b) “Single-engagement event” means a stand-alone non-recurring event in a single location, or a series of events in the same location no more than once a week.

(A) The musical group is performing as a symphony orchestra, the musical group is performing at a theme park or amusement park, or a musician is performing in a musical theater production.

(F) “Single-engagement live performance event” means a stand-alone musical performance in a single venue location, or a series of performances in the same venue location no more than once a week. This does not include performances that are part of a tour or series of live performances at various locations.

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB2257