Issue link: https://digital.copcomm.com/i/1179836
THE ARTISAN FALL 2019 • 15 California Laws Affect Guild Members Recently, Gov. Newsom signed SB 271 that will ensure full access to Unemployment Insurance (UI) and State Disability Insurance (SDI) and Paid Family Leave (PFL) benefits for California resident entertainment industry workers who work on productions that take them to other states. Sen. Scott Wiener of San Francisco authored the bill which was co- sponsored by the California IATSE Council (CIC) and the Entertainment Union Coalition (EUC). It will go into law in January 2020. This is an extremely important piece of legis- lation for the thousands of entertainment industry workers and their families who depend upon these benefit programs in time of need and economic stress because of disability as a result of injury or illness, or are responsible for the care of family members. Several years ago, it was discovered that a number of IATSE members were denied their UI and SDI claims; they had all worked on distant locations, believing at the time that they were automatically covered by California benefits. Through some unfortunate circumstances, the plight of these IA members was brought forward to the CIC and EUC for help. The guilds and Sen. Wiener worked tirelessly on behalf of the members and got a bill passed through the California legisla- ture with unanimous support; a tremendous victory. Gov. Newsom also signed AB 51, authored by Assembly member Lorena Gonzales that will protect workers from retaliation if they refuse to sign away their rights. It does not prohibit employers from using arbitration agreements to resolve workplace disputes. Instead, it merely requires that employees choose to sign such agreements without the coercive threat or job loss or other retaliatory actions, The revelations of widespread sexual harassment and con- fidential settlements have rightly focused policy makers on the need to ensure that victims have access to justice, that violators are held accountable and that those who are innocent are publicly acknowledged as such. Confidential settlements inhibit all three of these goals. The instances of repeat offenders have also demonstrated the harm that comes from keeping the outcome of these claims confi- dential. Confidential settlements epitomize all of the most harmful practices that have enabled widespread abuse to go undetected for decades. From a joint release from the CIC, Studio Laborers, SAG- AFTRA. Teamsters and Writers Guild West: "There is a great deal of confusion about the potential impact of the new California Bill, AB 5, on loan-out companies. Over the past four months, we have carefully monitored this legisla- tion as it was drafted and moved through the California Legislature. During the time, we conducted due diligence within our own Guilds and Unions, with outside tax attor- neys, CPAs, and entertainment lawyers knowledgeable about our business and loan-out companies, and with legislative staff in Sacramento. These conversations were all under- taken to ensure that AB 5 would not undermine the rights secured by our collective bargaining agreements, including the right to form and utilize loan-out companies. Nothing in these conversations has our own internal assess- ments: neither AB 5 nor the Dynamex decision, which has now been the law in California for a year and a half, undermine your use of a loan-out. Once the Dynamex deci- sion became law in California in 2018, all the doomsday pronouncements now being made could have come to pass, but they did not. AB 5 codifies the Dynamex decision, its sole purpose is to protect workers across California who are currently misclassified as independent contractors. Members of our Guilds and Unions are not independent contractors; they are employees, whether or not they utilize loan-outs. Loan-out companies are employers and so they too do not have independent contractor status… Our CBAs expressly allow members to use loan outs. Our CBAs also protect our status as an employee. AB 5 does not undermine these legal or contractual rights. AB 5 is not directed at our industry, and we do not believe it will trigger a change to industry practices." This analysis is not a substitute for individualized tax advice. Members should always consult their own professional tax advisors to ensure the optimal tax treatment of their earnings. GUILD NEWS The California IATSE Council in Sacramento