In January, PPB Newslink reported on a bill moving through the House of Representatives that would effectively ban independent contractor classifications under federal labor law. Observers have pointed to the bill’s similarity to California’s Assembly Bill 5, which became law in the state on January 1, and considers workers employees unless they can meet three conditions that would classify them as independent contractors.

I have read the bill that passed in California. From my understanding, we, as promotional product distributors, still would not fall under “employee” status, regardless of whether or not you are a partner of a larger company, like Geiger, iPROMOTEu, HALO or some other. The terms contained within the sales partner contract do not meet the requirements contained under the bill’s criteria.   

Distributors not affiliated with a third-party corporation would not be affected either. You are a business owner with a Tax ID and you collect, pay and report sales taxes, the same as any business, large or small. Your “employment status” would remain the same.

Should this bill pass, the larger concern for small-business owners will pertain to how you structure service agreements when hiring part-time staff, temps or other independent contractors who provide services for you and/or your business. To avoid having employee taxes or other employee fees levied, it is important to know what to include or not include within the language of the contractual agreement set forth between you and any service provider you may work with on a routine and contractual basis—i.e virtual assistant, marketing consultant, IT, etc.  

I recommend reading the bill before getting too upset. I do not agree with the bill, however, I do not believe it will affect us to the extent you may initially think.

Stacey Carey
President
SAC Promos
Palm Beach Gardens, Florida
PPAI 751187, D1

Most small businesses rely on relationships with independent contractors who enjoy the freedom and flexibility to compete with the big boys. These kinds of policies are an attack on freedom of choice and place a handful of large conglomerates and unions in charge of controlling the workforce.

Stuart C. Young
Owner
SAY Marketing and Promotions
Adelanto, California
PPAI 409586, D2

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The January 30 issue of Promotional Consultant Today shared six tips with readers on how best to manage your energy during a busy day at the office.

Thanks so much for the great tips as a reminder to slow down and focus to eliminate all the clutter in our brains.

Lisa Brown
President
Bowled Over Promotions
Orlando, Florida
PPAI 348470, D2

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James Khattak is news editor of PPB.