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Comment by kerkeslager | Hacker News Reader

Meh, as a freelance software engineer who sometimes works for California employers, I'll be happy to classify myself as an employee and decline health insurance in exchange for higher pay.

While the law could have been written more simply, I think your concern for my well-being is misplaced.

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It's not that simple. For a company, a contractor is much different than an employee, and it is much more regulated and costly to terminate an employee.

For example, if you terminate an employee you have to have proper documentation to justify the termination. Even then, you are still vulnerable to a wrongful termination lawsuit...unless you offer them severance in exchange for signing away the right to sue.

You are also on the hook for unemployment.

Wouldn't a way to "work around" this be to incorporate or form a sole proprietorship for your own services?

Incidentally, you'd be crazy not to do this, as having a business, even a sole proprietorship, makes taxes a lot easier.

Not in California, with mandatory payroll tax even for single owner corps.

Sure, maybe you can replicate an arrangement you had before, but due to the multiple new layers of bureaucracy you’re going to get paid less. Like I said, they knew this was an issue which is why 90% of the law is carve-outs. Unfortunately software engineers (and many other professions, I’m sure) have slipped through the cracks and now will be subject to the harms that they were trying to avoid for doctors, accountants, fishermen, etc etc etc

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