I've been looking more and more into this.
In California (Assembly Bill 5) states that
(1) the work she performs is free from control of the hiring entity, (2) the work is outside the usual course of the hiring entity’s business, and (3) the worker is customarily engaged in an independent trade.
(2) the work is outside the usual course of the hiring entity’s business is impossible for us to avoid. All of the contractors are performing office cleaning services and we are an office cleaning company.
More importantly, Even established cleaning businesses can be soleproprietors or Single Member LLC's who chose to perform the labor themselves. And just because they are working sololey does not make them our employees because:
We dont Control their work, We dont Make them wear our logos/represent our company, We don't provide equipment/insurance/supplies, etc.
We are simply a company that acts as a Sales/Marketing/Billing company for other Janitorial companies.
Does this AB5 law mean that we have to exclude any sole-proprietor or single member corporation from transacting business with us?
I think this law was not thought all the way through. It definately will stop the exploitation on IC's (for those are exploiting them), but it will also negatively impact those who are operating LAWFULLY.