AB5 - Entertainers Exemption

AB5 - Entertainers Exemption

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Ben Hammer
Ben Hammer signed this petition

On January 1, 2020, Bill AB5 went into effect. Some professions were exempt, ie doctors, psychologists, lawyers, accountants, etc because they are seen to work with and set their prices to customers. Entertainers, however, were not exempt. That means that for a promoter to hire an entertainer for a gig, they have to put that entertainer on payroll and pay payroll taxes. Entertainers are no longer allowed to be independent contractors. 

If a musician wants to hire other musicians to play a gig with him, that initial musician has to pay to create a corporation and then list the other musicians as employees and pay to have a payroll company pay the musicians and also pay the payroll taxes for the musicians hired. Even if it's only for a couple of gigs. 

If a restaurant wants to have musicians play at their establishment or have an actor perform, the restaurant now needs to hire the musician/actor as employees on their payroll and pay payroll taxes for the artist. This means that live music/work, which is already diminishing, will become even less for entertainers. 

Music and entertainment is such a big part of California's industry and musicians, actors, comics, etc should be able to keep the status of independent contractor and not be subject to AB5.

Entertainers are all independent entities who take gigs and are able to set prices for the work they do. An entertainer has the ability to refuse work if the money is not what they find to be appropriate for the job provided. Entertainers work with the clients who hire them to provide the appropriate entertainment for their event. We are independent contractors and need to be acknowledged as such by the State of California in regard to AB5.