Thread: #AB5 hurts small businesses by not allowing subcontracting as part of #BusinessToBusiness Today I was presented with an opportunity to bid on some work. It was work from home, great during this pandemic. So what happened? #AB5stories 1/
This project would be an opportunity to collaborate with a longtime friend and colleague, who is also an independent consultant. We each have our own businesses (separate LLCs), clients, and market ourselves. The client could use both of our expertise. #AB5stories 2/
The client wants one statement of work for the project. So to make that happen, one of our businesses would be the lead, and the other would subcontract. Under #AB5 that’s not allowed. #AB5stories 3/
#AB5 has an extensive test for business to business transactions, and ALL 12 must be met. Subcontracting excluded here “The business service provider is providing services directly to the contracting business rather than to customers of the contracting business.” #AB5stories 4/
#CALeg thinks they fixed it under #AB2257 by allowing consultants to work under a referral agency—the only way we could partner under a single contract. That adds an administrative cost to the contract, and the client doesn’t want that (can ya blame them?) #AB5stories 5/
So I’d like to extend a hearty thanks to @LorenaAD80 @LorenaSGonzalez and #CALeg for failing to write a good law in the first place, and failing to take a meaningful step to fix B2B in the “cleanup bill” That “protection” I’m getting sucks. #AB5stories /END
