Heavy lobbying and behind-the-scenes work from the American Society of Travel Agents (ASTA) and the California Coalition of Travel Organizations (COTO) has helped achieve an exemption for travel advisors from California's Assembly Bill 5, a new legislation designed to limit the use of independent contractors in businesses.
The issue has been a bone of contention in the state, and in other areas, where independent contractors, or freelancers, have long derided work-place abuse and salary inequality because they were not considered full-time employees.
But many travel agencies rely on independent contractors (ICs) to sell travel. The amendment placed in AB 5 would add travel agency services regulated by the state's Seller of Travel law to the list of "Professional Services" exempt from the bill's impact.
ASTA said it would issue a more formal statement following the Labor Day weekend, but in an email ASTA Executive Vice-President of Advocacy Eben Peck said it was great news - with an asterisk.
"While this is great news, the process is far from over. AB 5 advanced out of committee to the full Senate, which has until September 13 to pass it and where additional changes might be made. Assuming there are no changes, it then goes to the Governor, who has until mid-October to sign or veto the bill," Peck wrote. "Another scenario with a bill of this complexity is that nothing passes and the legislature takes it back up early next year. We'll be watching closely and engaging wherever necessary, but getting to this point is a huge win for ASTA and our members."
Peck noted that the only provisions of the amendment that might need changes are a requirement that an independent contractor "maintain a business location, which may include the individual's residence, that is separate from the hiring entity. In addition, the IC must be "customarily engaged in the same type of work performed under the contract with another hiring entity" or must "hold themselves out to other potential customers as available to perform the same type of work."
This would inhibit agents who work exclusively with one particular agency.
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