, and Studio Utility Employees Local 724 said that although there is “a great deal of confusion about the new bill” and the potential impact it will have on their loan-out companies, the new law “is not directed at our industry, and we do not believe it will trigger a change to industry practices.”California Bill Aiming To Attract Film & TV Production From Georgia Paused In Assembly
“Over the past four months, we have carefully monitored this legislation as it was drafted and moved through the California Legislature,” the unions said. “During that time, we conducted due diligence within our own guilds and unions, with outside tax attorneys, CPAs, and entertainment lawyers knowledgeable about our business and loan-out companies, and with legislative staff in Sacramento.
“Nothing in these conversations has changed our own internal assessments: neither AB 5 or the Dynamex decision, which has now been the law in California for a year and a half, undermine your use of a loan-out,” the unions told their members. “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. AB 5 exempts the kind of business to business relationships which loan-out companies are set up to support.
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