Sacramento’s latest target: small business owners
Assemblywoman Lorena Gonzalez nearly destroyed the entire independent contracting industry with her notorious legislation Assembly Bill 5. Now, she’s set her sights on small business owners and the hundreds of thousands of Californians they employ.
Assembly Bill 257 aims to demote over 25,000 franchise owners to middle managers and subject them to the authority of large corporations, an unelected board, and eventually, corrupt unions that put people like Gonzalez into office. The bill seeks to hit small business owners – particularly restaurant owners and workers – as they gasp for life after more than a year of Governor Gavin Newsom’s statewide shutdowns, restrictions, and mandates.
The legislation, which could be called “AB5 2.0” for the devastating impact it would have on jobs, workers’ and businesses’ autonomy, takes advantage of the fact that most people don’t understand just how independent franchises truly are of their parent brand. Contrary to misconceptions, local franchise owners are responsible for hiring and firing decisions, setting wages and benefits, and ensuring their businesses comply with health, labor, and safety laws. The franchisor has very little say over the day-to-day operations of the small business.
If Gonzalez gets her way, franchise owners and the more than 373,000 people they employ would become employees of the national brand, and subject to its decisions, and the franchisor would be liable for actions by the franchises.
All parties would be subject to decisions made by a “Fast Food Sector Council” that would be created by the legislation. The board – which would be heavily dominated by union appointees – would have the authority to set industry wages and standards would supersede those set by the legislature.
As with her attacks on independent contractors, Gonzalez and her supporters in Sacramento are going after the very people they claim they’re trying to help. Similar to the contracting industry, the number of female and minority franchise owners is rapidly growing, according to research by the International Franchise Association. Over the past five years, the amount of minority and female franchise ownership has increased by over 50 percent. While only 18 percent of non-franchise businesses are owned by minorities, nearly 33 percent of franchises are, demonstrating this model is a way to achieve the American Dream.
Sacramento politicians killed the American Dream for California’s freelancers. Let’s hope they don’t do the same to small business owners.
Quote of the week
“The coronavirus pandemic opened many parents’ eyes to the new and different educational possibilities that are out there. While in the past many went with what their local district or even their local private school had to offer, the pandemic exposed millions of families to pandemic pods, microschools, hybrid homeschooling, virtual learning, and a host of different educational modalities that might better fit their child’s needs.” — Mike McShane, Forbes
More from CPC
- WATCH: LAUSD rally with LAUSD parent
- CRT: Critical Race Theory or Crazy Radical Tantrums?
- Who will support California’s populists?
- Listen: New episode of the Radio Free California Podcast is out! Teat Cheat
CPC and allies in the news
- Some Southland parents and students say LAUSD is leaving them out of the school reopening conversations
- Will the backlash to school closures lead to education reform?
- Parents demand that LAUSD schools fully reopen in fall
- CPC’s Chantal Lovell talks teacher union demands with Lars Larson (53-minute mark)
- Despite enrollment declines, Newsom wants to spend billions more on schools
- Generous pension, poor investments left Kern Co. taxpayers with ballooning burden
- Oh, what a year for school choice
- School choice also gives teachers like me more choice
- NYC schools will reopen fully in September with no remote option
- School choice and charter proponents target public education in key states
- Are public education monopolies strangling online charter schools?
- California’s war on homeschoolers
- LAUSD to start staffing up for new school year as part of recovery plan
- How my mind opened to charter schools
- California has prioritized state and union power in handling the pandemic
- Longtime SEIU Local 1000 president Yvonne Walker ousted by ‘outsider’ in union election
- New head of largest state worker union won’t back Newsom
- AFT’s Weingarten sends letter on mask guidance to education department, CDC
- UTLA chapter chairs pass resolution calling for end of US aid to Israel
- UAW gets more than 10,000 signatures to organize 10 University of California campuses
- Why it’s not easy to build affordable housing in California
Other things we’re reading
- Investigations of improper activities by state agencies and employees
- Another summer of California power outages poses threat to Newsom as he faces recall
- Tarnished California: The Golden State is bleeding people for the first time, including me
- California’s costly experiment with online community college is a textbook example of government failure
Connect with CPC