Search Travel Market Report

Seabourn
Silversea Bookend Ad
Silversea Bookend Ad
mainlogo
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • People & Events
  • Training
  • Who We Are
    • Dan McCarthy
    • Denise Caiazzo
    • David Cogswell
    • Marilee Crocker
    • Richard D'Ambrosio
    • Steve Gillick
    • Mary Gostelow
    • Maria Lisella
    • Jessica Montevago
    • Paul M. Ruden
    • Daine Taylor
    • Barbara Peterson
amawaterways
silversea

Concern Grows in California for Travel Agent Independent Contractor Status

by Richard D’Ambrosio / April 24, 2019
Concern Grows in California for Travel Agent Independent Contractor Status

Agent/IC relationships are “now at risk due to a recent court decision in California. Photo: Shutterstock.com.


The California Coalition of Travel Organizations [CCTO] has issued a “call to action,” urging California travel agencies, tour operators and independent agents to contact their state senators and assembly members to resist calls for new legislation that might tighten up the rules for employing independent contractors (ICs).

“Please take action today to preserve the independent model that has existed for decades and provides opportunities for thousands of small business owners,” CCTO said in its call-to-action memo distributed recently. The memo also provided rosters of state legislators and an example of a letter agents could adopt and customize.

The email campaign, from CCTO President Diane Embree, said, “California legislators are considering legislation to enact new laws determining when workers are considered ‘independent contractors’ and when they are considered ‘employees.’”

“The request is that state senators and assembly members take action to ensure that legislation addressing the Dynamex decision clearly states that independent agents under the state’s Seller of Travel Law are independent contractors,” CCTO said.

Embree is referring to the 14-year-old Dynamex Operations West v Superior Court of Los Angeles case. When Dynamex changed the status of its delivery drivers from employees to independent contractors, the employees filed suit.

The debate has since heightened. In April 2018, the California Supreme Court issued a ruling making it harder for employers to classify workers as independent contractors. Under the new ruling, California workers are assumed to be employees unless the following three factors are proven by the employer:

1. The worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact.

2. The worker performs work that is outside the usual course of the hiring entity’s business.

3. The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.

Until the April 2018 ruling, the state relied on a previous California Supreme Court decision S.G. Borello & Sons, Inc. v Dept. of Industrial Relations (1989), to adjudicate cases about employment status.

Independent contractor status “at risk”
Agent/IC relationships are “now at risk due to a recent court decision. The ‘B’ criteria established in the California Supreme Court’s April 2018 Dynamex decision would result in these small business owners being considered employees,” CCTO said.

“Since the inception of the California Seller of Travel Law 25 years ago, this state consumer protection law has acknowledged independent agents — who are primarily women and are all small business owners — as an integral part of the travel industry,” the CCTO told its agents in its recent memo.

CCTO noted how ICs set their own hours and schedules, set their own rates, select the customers with whom they will work, select and market their own brands, may choose to affiliate with more than one host agency, select the services they desire to sell, may decide to specialize in specific types of travel services, and select the service providers whose products they desire to sell.

“Few, if any, of these important factors would be available to these independent small business owners were they to be forced into an unwanted employee relationship. CCTO estimates there are tens of thousands of persons who are providing travel services as small businesses in conformance with the Seller of Travel Law,” the memo said.

CCTO is directing agents and ICs to go to the state website, http://findyourrep.legislature.ca.gov, so they can identify their representative and petition them to oppose any future legislation.

The communication example provided by the CCTO suggests language like the following: “I am contacting you as your constituent who is a small business independent travel agent. I urge you to take action to ensure that legislation addressing the Dynamex decision clearly states that independent agents under the state’s Seller of Travel Law are independent contractors.”

  0
  2
amawaterways
silversea

MOST VIEWED

Brought To You By
  1. Eva Jenner, Charlie Dunwoody Leaving Holland America Line
  2. The 15 Most Anticipated Hotel Openings in 2020
  3. Three Online Booking Horror Stories That Show Why You Should Always Use a Travel Agent
  4. What is the Process Like for Getting a REAL ID?
  5. Black Friday and Cyber Monday Hotel Deals
  6. 5 Things Travel Advisors Should Know About Norwegian Encore

MOST EMAILED

Brought To You By
  1. State Department Issues Travel Advisory to Hong Kong as Unrest Continues
  2. New Zealand Introduces New Travel Requirements
Tip of the Day
Brought To You By

“We want to show agents, we didn’t start out as a CEO and COO on stage. You put in the hard work and the effort, you make it happen.” 

Michelle Fee

Cruise Planners

 Share...
Daily Top List
Brought To You By

Top things to do in London

1. Westminster Abbey
2. Natural History Museum
3. St Paul's Cathedral

4. Tate Modern
5. British Museum
6. Shakespeare's Globe

7. London Eye

Source: Lonely Planet

 Share...
Previous Daily Top List
TMR THIS WEEK
Sponsored by Travel Planners International
http://services.travelsavers.com/AMGService.svc/REST/GetImage?ImageID=91ddcdf0-1b15-ea11-9b23-782bcb667b27)

The Business of One: How to Stay Connected and Confident as a Home-Based Travel Agent

Here are some helpful tips on how to best to leverage your time and resources to make the most of your home business.

Read More...
amawaterways
Silversea
TMR Recommendations
Silversea
With 900 destinations across 7 continents, Silversea will take you wherever you dream to go.
hbar
MSC
With discounted group rates and protected consumer amenities, you'll love MSC Cruises NEW EZ Groups
hbar
Events 365
The NBA season tips off on Tuesday 10/22! Earn big on game tickets from Events365!
hbar
Riviera
Explore Europe's iconic waterways with the UK's leading river cruise line, earn lifetime commissions
hbar
Top Stories
ASTA Cautions New York Legislators About Independent Contractor Bill
ASTA Cautions New York Legislators About Independent Contractor Bill

Imitating California’s AB5 bill would create confusion for business owners and destroy New York’s travel agency industry, advocates tell key committee.

 Read...
ASTA Announces Open Enrollment for New Members’ Health Insurance
ASTA Announces Open Enrollment for New Members’ Health Insurance

The organization’s new member health insurance plan will be available to members in 38 states through an “association health plan.”

 Read...
If You See Something, Say Something: Advisors are the Eyes and Ears for Potential Supplier Problems
If You See Something, Say Something: Advisors are the Eyes and Ears for Potential Supplier Problems

Learn how travel advisors can employ strategies to protect themselves from supplier issues, and how consortia and host agencies can help to anticipate and resolve those issues.

 Read...
Holiday Fraud Season Picks Up, and Travel Advisors Need to be Wary
Holiday Fraud Season Picks Up, and Travel Advisors Need to be Wary

Agents report a seasonal increase in email and social media fraud campaigns designed to hack hard drives and bank accounts.

 Read...
Becoming Your Own CFO Doesn’t Mean Earning an MBA
Becoming Your Own CFO Doesn’t Mean Earning an MBA

Travel advisors often say they do what they do because they love travel. But to sustain a business, you need to become a master of your company’s finances, too.

 Read...
More Than Half of Travelers Would Pay More for Personalized Itineraries
More Than Half of Travelers Would Pay More for Personalized Itineraries

New study by American Express Travel says the majority of leisure travelers are overwhelmed by the myriad of options presented during the trip booking process.

 Read...
News Briefs
  • Hahn Air to Issue Airline Tickets Using Blockchain Technology
  • Vision Travel Announces Direct Travel Rebrand in Canada
  • Travel Advisor Community Makes Final Push for California Labor Bill
  • California Senate Approves Gig Economy Bill
  • U.S. Senators Introduce Bill of Rights for Airline Passengers
  • Southwest Airlines Partners with Nintendo for ‘Summer of Surprises’
TMR Outlooks
River Cruise Outlook 2019
Niche Outlook
Mexico Outlook
View All
Advertiser's Voice
TMR TV: Norwegian Encore Has Arrived
About Travel Market Report Mission Editorial Staff Advisory Board Advertise Travel Trade Readership Report
TMR Resources Webinars Calendar of Events
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
243 South Street, OysterBay, NY, 11771
News|Leisure Travel|Land Vacations|Cruise|Canada Retail Strategies|People|Luxury|Training
© 2005 - 2019 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy