The United States is a place where people believe dreams will come true. America is suppose to be the land of the free. But how free are we really? This system is not made for most folks to proser. It is made for most folks to be a slave to it. Capitalism without compassion for the common man is what we are dealing with. “Capitalism Curtain Calls,” defines Capitalism “…products are designed, marketed and sold to generate income and create profit.” (Vipond, Paddy) This definition of capitalism sounds like a machine. Machines have no compassion or care, they just operate to produce. Capitalism is an ugly machine that is rooted in racism, sexism, homophobia, ageism, classism etc… Capitalism was the reason why the slave trade and 500 years of mentally and physical torment has happened to Africans in the Americas. With capitalism the poor stay poor and the rich get richer. “Almost all (90%) of the poorest counties in 1980 were still at the bottom in 2016….” The rich elite have stay consistently on top. (Yes, Capitalism) Also, with the introduction of more restrictive labor laws, things are getting even worse. The common person is stepping farther into poverty.
The biggest issue is greed and the need for power.. The United States government and big business alike only care about the bottom line. The bottom line is profit above all else. This problematic system called capitalism, which was created with a lack of care of the common person. This is why labor laws like State Assembly Bill 5 (AB5) even exist. AB5 is the California labor law that forced most independent contractors (IC) into employee status. In several different industries people lost the right to be self employed. AB5 has pretty much erased self employment for most industries. But some industries are exempt. The industries that are exempt are mostly white and male dominated. The professions on average are not considered working class. Doctors, lawyers and real estate agents, accountants, veterinarians etc… are all exempt. ( Corporate Compliance) It not surprising to see that the most economically sounds and predominately white industries were allowed exemptions. Thirty three percent of all doctors in California are white, while 3% are black and 6% Latino (California Physicians). This makes it very apparent AB5 singles out the BIPOC marginalized communities in California.
State Assembly Bill 5 has also affected small business owners. In the theater arts some are, “cutting back on programming or canceling services because of the cost required to convert independent contractors to employees. (The AB5 backlash). Some small business in California, faced with the quarantine and AB5, have closed for good.
AB5 was set in place to help protect the gig workers of companies like Uber and Lyft. These workers where exploited and do need protections. But why are all other industries lumped into this law. Also, Uber and Lyft filed for exception and are not affected anymore. “The ride-hailing companies Uber and Lyft won an exemption from AB5 in November 2020 when state voters approved Proposition 22, allowing them to classify their drivers as contractors, after a campaign in which the companies spent more than $200 million.” (Supreme Court) So, what was suppose to originally be a law to protect workers of ride share companies and other under-protected industries is now one of the most horrible labor laws for small business owners and other self employed folks to date in California.
So a serious question is: Why does the United States have such a detrimental overall stance on labor? I know there are several answer to this question and folks have written numerous books regarding this subject. But the US government simply wants more control over the common workers. They wants us to pay more taxes and this Capitalist system lacks real connection to the most marginalized workers. Because of that, we are seeing a greater lack of understanding of how to support labor. The government need to support labor or people in a way that is viable to living a meaningful life. The destructive labor law State Assembly Bill 5 (AB5) has caused unemployment to raise, drastically decreasing the number of small business and self employed folks and has caused an increase in people working in unsafe work conditions.
The adult entertainment industry, in particular adult dancers (Strippers) were deeply impacted as well. As soon as this law was enforced about 50% of all adult dancers here in California lost their jobs. Unemployed dancers either got out the the industry, some dancers become homeless, some moved and or tired other forms of sex work. To survive some dancers resorted to more dangerous forms of sex work. According to a survey Artists Revolt a community conducted, 77% of the people surveyed were sex workers and 66% of folks surveyed were negatively impact by ab5. (Survey App) Other industries that have been greatly impacted are the trucking industry and interpreters. Karen Anderson founder of Freelancers Against AB5 spoke at the California State Commission on civil rights stated that folks most greatly effected are older or seniors and in particular older black women are the most affected negatively by this law. (Karen Anderson ) The US labor department wants to draft a law very similar to ab5 to be enacted federally. If this happens for most industries, independent contractor or self employment will be a thing of the past.
It is a must that the US start to create a more fair and open approach to labor laws. Bottle necking everyone into employees status isn’t the solution. There needs to be way more wiggle room in the definition of self-employed and being an employee. So, the state and the federal government should go in the opposite direction in which they are heading in the classification of labor. Using the excuse of misclassification as a broad definition to push most workers into employee status. As soon as AB5 came into law, numerous workers in the affect industries lost their jobs and careers. Why? Because of this simple fact. Employers can only employee a certain number of employees. That just common sense. And employers can hire more independent contractors, especially in careers were IC’s are paid by the customers not management. For instance historically strippers obtain their money from the patrons of the club not club management. And now that the clubs are required to pay their employee, they realistically can only hire a certain number of dancers. This has create major biases dealing with race body promotions, disabilities and gender identities.
There needs to be a broader definitions in worker status. First and foremost independent contractors must be allowed to organized, unionize and have other protections that employee have. So, the marginalized worker can govern their own affairs. The California and federal governmental bodies are not understanding that not everyone fits into employee status. Some workers need the flexibility and the independence of IC status. There are numerous reason why folks want to be their own bosses or independent contractors. “Advantages of being an independent contractor over being an employee include more control since you're your own boss. You earn more as an independent contractor, and the tax benefits can include deducting your business expenses.” (Niznik, John Steven) Working class folks from numerous different industries have suffered under AB5: losing work, losing business, having to move out of state or even worse joblessness and eventually homelessness.
Ab5 has drastically reduced the number of self employed folks and small businesses also. In The Los Angeles Times article The AB5 Backlash it states that, ”There simply is not enough money at the levels of the industries that we work in to support programs where all our artists are paid hourly wages and benefits.” (The ab5 Backlash) Small business cannot afford the health care, workers comp and unemployment insurance. (compliance) Big business usually remedy this by paying employees lower wages to cover of employee benefits. One of the major reason why ICs make more money. Also the so-called benefits that are offered to employees are only for full time employees. In order to be consider a full time employee in California employee have to work 30 to 40 hours a week. (Differences) Employers keep employees at part-time, so they can save money on employee benefits.The promise of IC’s being convert to employees for benefit is not an 100% truthful statement. Employee status does not guarantee protections, And forced employee status due to AB5 has created more unemployment and biases hiring practices.
Employees who make over $50,000- $100,000 a year are taxed at 37% Independent contractors are taxed at 15%. (Guagenti, Calogero) So, the bottom line is the state wants more tax dollars. Tax reduction for the working and middle classes is critical . The rich need to pay taxes at 37% not the middle class. If a single filer makes about $41,000 to $89,000 they are taxed at 22% federal. (Josephson, Amelia) The state takes 10% at that tax bracket. If you make $70,000 a year you are only bring home $54,000. (Guagenti, Calogero.)
Lorena Gonzalez is a state assembly person that introduced the legislation for State Assembly Bill Five ( AB5). The reason why was suppose to protect workers and the state was loosing tax dollars due to independent contractors. But according to The Coast News, a San Diego news paper. “This amount of taxes lost that was specified that was listed due to independent contractors was an factious amount.” Lorena Gonzanlez gave the state assembly a “made up” number to push AB5 into this law. (Steve 333)
If we alleviate our erroneous military spending budget. Then we could lower taxes significantly. The US governments taxation is illegal. And they colonizers who occupied this country said “ No taxations without representation.” Most of us are not represented or supported by government programs. This programs on average support the privileged, which is not the BIPOC and or poorer communities of the US. “Military spending provides the largest share of the federal budget in terms of percentage.” The defense budget is half the discretionary budget. (Timothy, Earl)
AB5 has created unsafe work conditions for several industries. For the Stripper or Adults Dance Entertainer industry, they have seen an increase in unsafe working conditions. Artist Revolt a community organizing group for marginalized people that create harm reductive solutions surveyed 101 people. Seventy two percent of the grouped surveyed were sex workers of some sort. 65% of grouped surveyed were negatively impacted by AB5. Out of that group a third had resorted to survivals sex work and a third decline to state if thy have resorted to survival sex work. (Survey) Survival sex work is anything someone need to do in a sexual manner to survive. Usually it's unsafe and not legal. So unfortunate these dancers are subjected to seriously dangerous situation just to make money.
Some solutions to unsafe illegal work condition is to reduce poverty. Besides getting ready of AB5 to help create jobs. The Untied States can reduce poverty by creating a real quality of life change. This looks like more fair labor and housing practices here n the US. Higher wages and, rental control need to implemented in order to correct some of the disparities dealing with wages gaps and high cost living.
Oil corporations profited more than 8 billion for just a quarter of this year. And US government is literally screaming about corporate greed. (Tharoor, Ishaan) It is very apparent that there need to be less overall profit and more money allocated into supporting labor. There should to be more government control over corporate greed. We need to see a real living wage. In Los Angeles to be able to afford to live with one child, a person needs to make $44 an hour, which is about 84,000 a year. (Living Wage Calculator) U.S. Bureau Statistics reported that, “Workers in the Los Angeles-Long Beach-Anaheim, CA Metropolitan Statistical Area had an average (mean) hourly wage of $31.70 in May 2021…” (Occupational).
So question how can a person afford to really live in Los Angeles? The average person does not make enough to afford to live without some form of extra income on top of their main income? More than half the population can not afford to live in LA with 1 child. (Living Wage Calculator) This is a major problem in United States period. The living wage is way below what is required to actually survive.
As US citizen we must really pay attention to the political climate. Especially in the realm of labor laws. We need to redefine what it means to make a living wage. And the bottle necking or worker to forced employee status isn’t help the economy like they thought. We need as many people as possible able to make a living however they can. That is really the main solution, viability in self employment and whatever other avenues of employment there needs to be.
The folks who up hold this society also up hold capitalism which upholds white supremacy.
Maintaining the status quo it their agenda so there which can get richer. It's easy to ignore how bad it is when your belly is full. Folks are “house-less” hungry and joblessness. Especially in places like Los Angeles. And a lot of it stems from how the government views labor.. We need labor reform, tax reform and an over all reform of the living wage theory now.
State assembly bill 5 need to be revoked and real protections must be set in place. The fact that the federal government is entertaining the idea of a federal level AB5 type law is scary. Some of the most marginalized folks in the most marginalized professions will suffer just like California.
Citations
California Physicians - California Health Care Foundation. https://www.chcf.org/wp-content/uploads/2021/03/PhysiciansAlmanac2021QRG.pdf.
Corporate Compliance Insights, et al. “The Potential Consequences of California's AB5.” Corporate Compliance Insights, 25 Nov. 2019, https://www.corporatecomplianceinsights.com/consequences-ab5-compliance/.
Differences between Part-Time vs. Full-Time Hours in California - Indeed. https://www.indeed.com/hire/c/info/california-part-time-vs-full-time-hours.
Guagenti, Calogero. “California Tax Calculator: Estimate Your Taxes - Forbes Advisor.” Forbes, Forbes Magazine, https://www.forbes.com/advisor/income-tax-calculator/california/.
Josephson, Amelia. “Federal Income Tax Brackets for Tax Years 2022 and 2023.” SmartAsset, SmartAsset, 5 Oct. 2022, https://smartasset.com/taxes/current-federal-income-tax-brackets.
Karen Anderson . “California State Commission on Civil Rights”, March 2021, Zoom CSCCR meeting
“Living Wage Calculator.” Living Wage Calculator - Living Wage Calculation for Los Angeles County, California, https://livingwage.mit.edu/counties/06037.
Niznik, John Steven. “Pros and Cons of Working as an Independent Contractor.” The Balance, The Balance, 13 Sept. 2022, https://www.thebalancemoney.com/working-as-an-independent-contractor-4047544.
“Occupational Employment and Wages in Los Angeles-Long Beach-Anaheim - May 2021 : Western Information Office.” U.S. Bureau of Labor Statistics, U.S. Bureau of Labor Statistics, 14 July 2022, https://www.bls.gov/regions/west/news-release/occupationalemploymentandwages_losangeles.htm.
steve333. “Webpage Footer for the Coast News Group.” The Coast News Group, 8 July 2021, https://thecoastnews.com/commentary-san-diego-lawmaker-used-false-data-to-peddle-her-disastrous-ab-5-law/.
“Survey App.” SurveyPlanet.com, Onyx Black, 13 Sept. 2022, https://app.surveyplanet.com/results/631fa008f8720adfec92b255.
Timothy, Earl. “U.S. Defense Budget 2022: How Much Does the United States Spend on Its Defense Budget?” Executive Gov, 24 June 2022, https://executivegov.com/articles/u-s-defense-budget-2022-how-much-does-the-united-states-spend-on-its-defense-budget.
Tharoor, Ishaan. “Analysis | amid World Crises, 'Grotesque Greed' Wins Out.” The Washington Post, WP Company, 7 Aug. 2022, https://www.washingtonpost.com/world/2022/08/08/oil-companies-profits-inflation/.
“The ab5 Backlash: Singers, Actors, Dancers, Theaters Sound off on Freelance Law.” Los Angeles Times, Los Angeles Times, 12 Feb. 2020, https://www.latimes.com/entertainment-arts/story/2020-02-12/how-ab5-is-impacting-california-readers-in-the-performing-arts.
Vipond, Paddy. “Capitalism's Curtain Call.” Class Action, 23 Mar. 2014, https://classism.org/capitalisms-curtain-call/.
“Wages and the Fair Labor Standards Act.” United States Department of Labor, https://www.dol.gov/agencies/whd/flsa.
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