Californians, industry urged to take action to protect independent advisors
The California travel trade is being urged to fight Assembly Bill 5, which could have a chilling effect on the travel agency business model.
An urgent call has been made to mobilize and show a wave of support for the role of independent contractors.
The California Assembly passed the bill which could severely restrict the ability of California businesses to use IC’s, which goes far beyond just the travel industry.
Industries which rely on independent agents such as Insurance and real estate have been given an exemption, and a grass roots effort spearheaded by ASTA is seeking such an exemption for the travel trade.
ASTA is working with the California Coalition of Travel Organizations, consortia and host agency partners to urge as many Californians as possible to call on their their state senators to amend the bill.
California will impose the so-called ‘ABC Test’ to differentiate an employee from an IC. Of most concern for the industry is the requirement ‘that the worker performs work that is outside the usual course of the hiring entity’s business.’
An IC selling travel would very likely fail the ABC Test based on this wording, which has wide-ranging ramifications across the industry in California.
That could make agencies liable for a host of employee expenses, such as worker’s pay, overtime and parental leave. The likelihood is that many would not be taken on as permanent staff due to high onboarding costs.
"It is critical that this legislation be amended to protect the independent advisor model that has existed in our industry for decades and provides opportunities for thousands of small business owners," ASTA says.
ASTA and the California Coalition of Travel Organizations are working hard to secure an exemption. All industry players as well as California residents are urged to act now and help force action from lawmakers to protect the current travel agency business model.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025