Jarrett Dieterle, a fellow with the free market think tank R Street, similarly argues that the mass reclassification of contractors as employees risks destroying the flexibility that has made gig-economy work so valuable for so many.
“Most workers who become freelance contractors or join gig economy platforms do so to smooth income volatility. They are facing unexpected large expenses or a sudden reduction in household income,” writes Dieterle. “Forcing contracting firms to reclassify workers as employees would make this quick access to supplemental income more complicated.”
According to an analysis performed by R Street, codifying the Dynamex decision into state law would foist some $6.5 billion in additional payroll expenses onto Californian businesses annually.