This kind of law exists because companies coerce people into becoming "freelancers", so the company doesn't have to pay benefits and can fire them at will, but then ask the "freelancer" to come to the office everyday, clock in and out in time, wear a badge, work 40h week, etc.
So lawmakers crack down on that, but law is a blunt instrument, and other valid situations can get more complicated.
But believe me, those laws are created 100% because companies abuse the concept of contractor.
I don’t have a stake in it. I’m not in CA and it doesn’t appear to impact me doing business with CA companies.
I imagine it’s a bummer for anyone trying to make their own way on their own terms in that state though. It might just be an unintended consequence, or maybe it doesn’t impact CA sole-proprietorships at all if they know the magic words to say or the right contracts to provide. Or perhaps it’s not as big of a deal as it sounded when they told me.
Just sharing my experience and saying I’m glad I live in AZ based on my limited knowledge.
So lawmakers crack down on that, but law is a blunt instrument, and other valid situations can get more complicated.
But believe me, those laws are created 100% because companies abuse the concept of contractor.