Neuberger Discusses Why California Dance Club Owners Opposed Gig Labor Law

12 May 2020 ABA Journal News

Of Counsel Mark Neuberger was quoted in the ABA Journal article, “Why exotic dancers and other gig workers are seeing employment law gains, COVID-19 losses,” about how dancers are successfully fighting back in court against being classified as independent contractors. 

This year, California passed Assembly Bill 5 which created a new legal standard for employment classification that favors classifying workers as employees. The law grew out of court cases over gig workers classifications as independent contractors. 

Neuberger said club owners opposed the law. Classifying workers as employees is “purely more costly—there’s payroll tax, Social Security, Medicare tax, FICA, and they may have to pay for workers’ compensation insurance—all those taxes automatically attach, then if they’re tipped workers, the company has to manage wage-and-hour compliance, break rules and mealtimes,” Neuberger said.