California AB5

 
 

California recently (2020) passed a measure to re-write labor law within the state. It’s confusing and lots of businesses we work with have genuine concerns about how it affects independent contractor labor, like the video production and marketing services we provide. Don’t Worry! Luckily for us, we fall within the Business-to-business services exemption written into the law. Therefore any work we provide for you is not affected by this new law. Here are the 12 factors that we satisfy to meet this exemption.

  1. Control. The business service provider must be “free from the control and direction” of the contracting business entity, both under the contract and in fact.
    Abstract Matter Media controls the process and schedule of our services to meet or exceed your deadline.

  2. Services must be to the business, not customers. The business service provider must provide services directly to the contracting business rather than to customers of the contracting business.
    Abstract Matter Media only provides business-to-business services. We do not interact with your customers unless it is necessary for the completion of the job.

  3. In writing. The contract with the business service provider must be in writing.
    Abstract Matter Media’s approved bid/proposal is your contract.

  4. Properly licensed. The business service provider must have required business licenses and business tax registrations.
    Abstract Matter Media is licensed & registered with our local government. Business License available upon request.

  5. Separate location. The business service provider must maintain a business location that is separate from the location of the contracting business.
    Abstract Matter Media performs its services from it’s work studios in Fremont and Hayward, California, unless travel is required for a shoot.

  6. Independent, established business. The business service provider must customarily engage in an independently established business of the same nature as that involved in the work performed.
    Abstract Matter Media has been an independent business in the video production and marketing industry since 2012

  7. Other clients. The business service provider must actually contract with other businesses to provide the same or similar services and maintain a clientele without restrictions from the hiring entity.
    Abstract Matter Media loves all our clients! We think thats pretty obvious from the work we choose to promote.

  8. Actively advertises. The business service provider must advertise and hold itself out to the public as available to provide the same or similar services. Abstract Matter Media is on the internets!

  9. Provides own equipment. The business service provider must provide its own tools, vehicles, and equipment to perform the services.
    Abstract Matter Media only uses their own equipment.

  10. Negotiate rates. The business service provider must be able to negotiate its own rates.
    Abstract Matter Media works with you to give you the best estimate of cost on your job based on what you need and when you need it. Every job is different.

  11. Set own hours and location. Consistent with the nature of the work, the business service provider must be able set its own hours and location of work.
    Abstract Matter Media sets its own schedule and calendar.

  12. Not applicable to construction. The business service provider must not perform the type of work for which a license from the Contractor’s State License Board is required, pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code.
    Abstract Matter Media promises not to build a house for you.