The California Senate has handed a invoice that might give new wage and profit protections to staff at so-called gig financial system corporations like Uber and Lyft. It additionally raised alarms inside the music trade, which warned it might carry opposed penalties on musicians within the state.
The 29-11 vote late Tuesday sends the invoice again to the state Meeting for ultimate approval over strident Republican opposition. Democratic Gov. Gavin Newsom has stated he helps it.
The proposal has drawn staunch opposition from on-demand supply and ridesharing corporations whereas successful assist from lots of the Democratic presidential contenders. It places into regulation a California Supreme Courtroom resolution making it tougher for corporations to categorise staff as impartial contractors. The invoice would make these corporations classify their staff as staff as a substitute.
Whereas its impression on gig financial system corporations has drawn many of the consideration, it might have an effect on a big selection of enterprise sectors, together with the recording trade. Music executives stated the invoice in its present state would crush the creation of impartial music in California by defining any artist who hires an individual to help them — together with producers, engineers, publicists, managers, dancers, background vocalists and others — as an worker and topic to stringent employment laws.
Earlier than the invoice handed the Senate, Assemblywoman Lorena Gonzalez (D-80), who authored AB5, advised Billboard she had been assembly and discussing all yr with artist unions and the recording trade on how this invoice would impression the work of musicians, however that in the long run the recording trade couldn’t come to a consensus on language. As a substitute, the teams most popular no modification associated to their trade in AB5 in any respect.
Talking with Billboard final week, A2IM president and CEO Richard Burgess stated the invoice was too broad as written by permitting impartial artists and musicians to be thought-about employers. “Unless there is an exemption for the music industry, it will make every studio engineer, employees for whoever is hiring them,” stated Burgess. “On a practical level, I don’t see how it can work.”
Burgess stated recording trade teams had been “running into a brick wall” making an attempt to get music-related exemptions included. The present system has been working high-quality, he stated, however that if the regulation passes and is signed by the governor it’ll “gut the music industry.”