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ASTA Dateline

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Issue:

As you're likely aware, we're battling a critical legislative proposal in California. Assembly Bill 5 is currently making its way through the state Senate and the bill, if enacted without amendment, would mean that thousands of advisors will no longer have the option of rendering their services as independent business owners to the agencies that currently engage them. 
 
In order to assess the likely impact of this harmful legislation on the independent contractor community, ASTA launched a survey yesterday. The preliminary results already paint a clear picture.

  • This is an established industry that is about to be thrown into upheaval by the new law. More than half of independent contractors have been in their role for more than 7 years
  • The vast majority of respondents (85%) are VERY satisfied with their status as an IC. 
  • 93% of independent advisors reported that the freedom to set their own hours and work schedules was an important factor in choosing the IC business model. 

If required by law to become agency employees, 41% of independent advisors stated they would choose to leave the industry or leave the state for one that allows them the flexibility they currently have.

Whether you live in California or not, we want your input. Please take a moment to complete our brief survey to help us collect more data and understand how various business models in our industry could be affected.

ASTA's Director of Advocacy, Genevieve Strand, and its General Counsel, Peter Lobasso, will be headed to Sacramento early next week for a series of meetings with Labor Committee members and other influential members of the Senate to personally communicate our members' concerns.  While there, they will also share the survey results quantifying the adverse effect AB 5 will have on our industry if an exemption for travel advisors is not secured. 


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