Many of you may now have heard of California legislation AB5 which was created to ensure that most workers in California are classified as employees, not independent contractors. Introduced by California Assemblymember Lorena Gonzalez, AB5 was created to incorporate the Dynamex ruling, which was a California Supreme Court decision from last year, into state law. That decision limited an employer’s ability to classify certain types of workers as independent contractors. Some members have asked if this new law will negatively impact the practice of using loan out companies as a way of ensuring fair tax treatment for our members. It is our view that AB5 will have no impact on the use of loan outs. AFM Local 47 along with DGA, WGA, IATSE and SAG-AFTRA have done exhaustive due diligence with counsel to come to this conclusion.
Another hot topic with AB5 is the so-called “end of the music business as we know it” tagline that some organizations are touting. Nothing could be farther from the truth! While AFM agreements clearly establish that musicians are employees and not independent contractors, there were many instances where employers attempted to misclassify musicians. Leading up to the bill’s adoption we worked closely with SAG-AFTRA to ensure that musicians and singers were properly covered under this new legislation. With the backing of the California Labor Federation, our Secretary/Treasurer Gary Lasley along with AFM reps all over California reached out to elected officials to seek continued support for this important legislation.
There are current talks underway with the California legislature and employer partners to clarify AB 5’s impact where necessary, but AFM Local 47 will always do what is in the best interest of its members first and foremost.
Whether it is a community orchestra, small theater, or a live performance, California law requires employers who hire musicians for performances, which meet the AB5 threshold, to pay the appropriate taxes and make the necessary withholdings. This way, musicians can apply for disability, unemployment, Social Security or workers’ comp when necessary and applicable.