The California law that went into effect at the beginning of this year and reclassifies many of the state's independent contractors as regular employees was intended to ensure they get company benefits, such as unemployment and disability insurance. The backers of AB-5 have claimed that without the rights guaranteed under the law, Uber and Lyft drivers, freelancers, and other gig economy workers have been exploited by employers.
The state lawmakers in favor of AB-5 suggested all companies would comply with the new law, but that hasn't been the case. Some businesses have been turning elsewhere for their workforce needs, and that's meant a loss of income for freelance journalists, language translators, and even mall Santas.
"Today I lost my 10+ year job as Santa," wrote Sacramento Santa Jerry on Facebook. He's been working as a Santa at Bass Pro Shops. "The agent (Nationwide Santas) is replacing all Santas living in California with Santas from outside the state to get around AB5...Insanity."
Nationwide Santas spokeswoman Gina Bacon said Jerry was not let go. She noted he is an independent contractor and that his contract from last year had expired. She insisted that he was not let go, but that the company is still trying to determine how best to deal AB-5. She also said she contacted Jerry earlier this week to offer him a job in California.
She also said she supports efforts by Jerry and other seasonal workers to protest the law. She said no one is talking about it's impact on the seasonal worker industry.
"Everyone is confused, including the lawyers," said Bacon.
Republican California State Senator Patricia Bates, an AB-5 critic, referenced an interview KGTV conducted with Jerry Tamburino, a Santa who has worked for more than a decade at a large commercial store.
"I don't know how someone can justify this," said Tamburino.
There is an effort to repeal AB-5, but the author, Democratic Assemblymember Lorena Gonzalez, said this week that changes to the law will be introduced in the California Legislature soon. She assured that exemptions are being made for certain freelance musicians, writers, and journalists.
"A company doing business in California will need to follow California law, regardless of whether the worker came from out of State or even the North Pole, " Gonzalez said in a written statement. "And luckily for Santa, there's nothing in state law or AB-5 that prevents Santa or his elves from working in a mall or department store during the holidays. The naughty labor brokers who are behind this event are shortchanging Santa. Santa can work as an independent contractor with these locations directly, or as an employee with the company that contracts them. These companies need to stop cheating Santa out of the basic labor protections everyone deserves."