What
The American Society of Travel Advisors (ASTA) is encouraging agents to get involved in a battle over legislation regarding regulations on Independent Contractors (IC) in California.
Why It Matters
The rules over who is considered an IC and how they are managed could have a major impact on the travel industry in one of the nation’s largest markets. Many agencies rely on the use of ICs — and, likewise, many advisors operate as ICs. ASTA wants to make sure that California’s Assembly Bill 5 is amended to protect this model and is asking advisors to visit the “grassroots” portal on its website for more information.
Fast Facts
- In 2018, the California Supreme Court issued a decision that sets up a three-pronged test for independent contractors in the state. This ruling has become known as the Dynamex decision.
- In May, the California Assembly passed legislation (Assembly Bill 5) to codify the ruling in the Dynamex decision — making it applicable to nearly everyone in every industry — by a vote of 59 to 15. The California Senate will soon vote on the bill.
- In order to assess the likely impact of the legislation on the travel community, ASTA recently launched a survey related to IC issues. The results are expected soon.
The Details
American Society of Travel Advisors
www.asta.org
