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California law will force small businesses to rethink staffing

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Posted at 9:29 PM, Dec 26, 2019
and last updated 2019-12-27 00:29:51-05

A California law that makes it harder for companies to treat workers as independent contractors takes effect next week, forcing small businesses in and outside the state to rethink their staffing.

The law puts tough restrictions on who can be independent contractors or freelancers rather than employees.

Supporters say it addresses inequities created by the growth of the gig economy, including the employment practices of ride-sharing companies like Uber and Lyft that use contractors.

The law will affect companies of all sizes, but small businesses that have used contractors because of their tight budgets will likely find it harder to comply.