Note: We recommend personalizing your letter, and sharing your own impact story. However, if you’re in a pinch for time, below is a template to get you started, with the words or phrases most ripe for quick personalization underlined.
Dear Legislators:
On behalf of myself and my fellow Independent Documentary Professionals — Production Companies and Producers, Directors, Directors of Photography, Cinematographers, Videographers, Editors, Sound Recordists, Motion Designers, Colorists, and Composers, I am writing to ask that you consider an exemption for the above categories of independent contractor with regard to AB5, and clarify the definition of “Fine Artist” to include our creative professions.
Many of us have legally formed California LLCs, partnerships, or S-corps. We have operated with business licenses and provide workers comp insurance for our own employees (if any) as required by law. We also make large tax-deductible investments in our own equipment, tools, training, insurance, and workspaces. As a freelancer, I have invested thousands of dollars in expenses such as insurance, computers, software, equipment, maintenance, office rental, research, and professional training.
But unlike the large motion picture companies of Hollywood or Pixar and ILM of Northern California, many of us are freelancers by choice, and work on important social issue films at a completely different scale. As individual business entities, we form teams of creative professionals who bring our own unique expertise and tools to work on short-term projects. A web video shoot may be only 4 hours; documentary productions may be a day or two, or occasional shoots over several years as we cover an evolving story. We could work for 100 different companies in a good year, and we typically work on multiple projects simultaneously, managing our own schedules and choosing projects based on our interests. This is truly a gig industry, and it is not practical or desirable for us to become employees to many of our clients.
However, under AB5, hiring companies are refusing to accept W-9s with the legal name / tax ID of our businesses and are forcing us to provide W-4s and go on payroll, even though we believe that we qualify for the Business-to-Business exemption and pass the Borello test. To protect themselves from liability, hiring entities aren’t going to the trouble of figuring out who is and who is not entitled to be an independent contractor. Everyone is being told they have to become an employee – even legitimate businesses. This makes no sense!
Forced to be employees, we will now receive W-2 income rather than 1099 income, without ability to deduct our business expenses. We will have no reason to maintain our LLCs and S-corps if we are compelled to work as employees, and the state will lose that minimum tax income. If we lose our ability to deduct our expenses, AB5 will put us out of business since the nature of our work requires us to use our own computers, cameras and other tools of our trade – the ones with which we are trained and experienced and prefer to use.
One of the most overlooked detriments of AB5 is its impact on women and people of color who have worked so hard to establish themselves in a competitive industry that has historically been unwelcoming. Rather than risk misclassification under AB5, their small businesses are being turned down in favor of larger production companies who have greater infrastructure, and who hiring entities therefore perceive to be less “risky,” even if they both pass Borello and have the same type of business entity. The playing field in our industry became completely unfair under AB5, in favor of those who already have the most resources.
AB5 has its place — there are jobs in our industry that lean towards employee classification, such as Office Managers and in-house creatives at big tech companies. But film industry professionals — who have their own businesses — should not be considered employees, regardless of what type of business entity they choose to operate.
AB5 has taken my livelihood and my freedom to choose where and when to work – something essential to me as a creative professional. If AB5 remains in effect, I will be forced to leave California or give up the business I have so passionately invested my time and resources developing.
I respectfully request that you consider an AB5 exemption for the above-named professionals, and clarify the definition of Fine Artist to include film professionals working in a creative capacity.
Sincerely,
Name
City, State
Name of Film Company and/or Professional Association(s)