AB5 Shutdowns

California lawmakers recently passed Assembly Bill 5 (AB5), which goes into effect January 1, 2020 and re-classifies many contractors as employees. While the intent was to give more workers benefits like unemployment insurance and health insurance by re-classifying them as employees, the effect will be that some companies shut down, stop doing business in California, or hire fewer workers. This is a list to keep track of the unintended consequences of AB5. Feel free to comment if I’ve missed one and I’ll add it.

SBNation, a sports blogging site owned by Vox, has indicated they’re replacing hundreds of freelance blogger positions with about a dozen full and part-time positions.

Envoy,  which began as a grocery delivery service and has grown to include elder-care tasks, announced it’s shuttering operations in the following message to its workers sent November 30:

Dear valued Envoy,

Due to impending changes in the law and external factors beyond our control, we have come to the extremely difficult conclusion that we will no longer be able to continue operating the current Envoy service past the end of 2019.

It has been one of the great privileges of our careers to make a positive difference in the lives of thousands of families, seniors, people with disabilities, caregivers, and so many more. We also recognize how much our Envoys value the opportunity to earn flexible income as independent contractors while helping others and building trusted relationships with clients.

As you can imagine, this has not been an easy decision, but unfortunately we have been left with no other choice.

Here’s what you need to know:

  • The last day for Envoy visits will be Sunday, December 29, 2019. Clients will be able to continue using the service through then.

  • Envoys may also continue performing visits through the last day. Please continue to confirm and update your scheduled availability as usual in order for the system to continue to be able to match you with clients and visits through the last day.

  • Envoys will of course be paid and reimbursed for all completed visits, including 100% of tips, on the regular weekly payment schedule before service is finally suspended. Final payments and reimbursements will be completed no later than December 31, 2019.

From the bottom of our hearts, thank you for all the good you have done for your clients as one of our cherished Envoys over the past 7 years.

If you have any questions, please reach out to us at help@helloenvoy.com

Warmly,

The Envoy Team

 

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