AB5, the state's new gig economy law, is intended to protect workers. But small theater, opera and dance companies worry it could ruin them.
is intended to reduce worker misclassification, making it harder for companies to treat workers as independent contractors. Signed into law in September, it establishes a test to determine if workers are employees who should receive minimum wage, paid sick days and other benefits.An earlier version of this article referred to Californians for the Arts as a lobby group. The organization is an advocacy group.
Under AB5, some professions including travel agents, graphic designers and grant writers are exempt. Fine artists are included in the list of exemptions, but there is no particular exemption for performing artists and no clarification if actors, singers, dancers or musicians are considered fine artists.“We really have no idea how this will be enforced or how it might change over the next couple years,” said Christopher Maikish, executive director of L.A.'s Celebration Theatre.
For the last year, the advocacy group Californians for the Arts has been working to create exemption language for arts industries and educate the legislature on the common arts employment model, which is run largely on independent contractors. “In a highly creative industry, we’re really not the kind of employment models where you fit into this neat box,” said Julie Baker, Californians for the Arts’ executive director.
Those who fail to comply with the law face fines. Under AB5, if a court finds a company or small arts organization willfully violating the law,For arts organizations staying afloat on grants and donations, both options — paying a penalty or facing a 30% increase in costs — could be devastating.
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