AB5 Nightmare

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Source: ED Publications PR

By: Company Press Release

AB5 Nightmare

For years, industry attorneys and pundits have been predicting upcoming legal mandates, requiring club dancers to become employees. Many operators have said it won’t happen in their lifetime.

Guess again. On September 11, 2019, California enacted Labor Code section 2750.3 which on January 1, 2020 codifies last year’s California State Supreme Court Dynamex decision, requiring entertainers and many other occupations to become employees. And as predicted at this year’s EXPO legal panel, at least one other state has already jumped on the bandwagon.

But 2750.3 wasn’t targeting adult nightclubs, they were just collateral damage. After countless lawsuits alleging club entertainers misclassified as non-employees, ironically, employee/entertainers have arrived through a completely different impetus: Uber/Lyft and the rest of the so-called “gig economy.”

Read the entire story in the upcoming November issue of ED Magazine, heading your way soon!