A new law in California called AB5 could destroy the independent music industry in the state, according to an urgent open letter published today.
The open letter was jointly penned by the RIAA, A2IM and the Music Artists’ Coalition.
AB5, which is set to go into effect on September 13th, was enacted to help protect workers in the new gig economy by making it harder for companies in California to classify those who work for them as contractors instead of employees. But music industry opponents insist that if legislators do not provide an exception for artists and smaller musical productions, it will simply force music artists to leave the state.
“Think of a 14-year-old kid in her bedroom making music with friends,” the letter offers as an example. “Is she capable of becoming an employer and providing punch cards, time sheets, guaranteed meal breaks, health care, retirement benefits, minimum wage, overtime pay calculation, mandatory tax withholdings? Imagine N.W.A, when they were making independent records in Compton, faced with the expense and administrative tasks of becoming employers.”
The focus of AB5 is specifically on Uber and Lyft — but the impact on other industries may be getting ignored.
Those who work for the ride-sharing companies often accept low wages without benefits, as they are considered independent contractors. The problem for independent music artists is that they must contract a wide range of services in order produce a record and/or music videos. This extensive list of contracted collaborators can include:
- Music Producers
- Music Video Producers
- Background Vocalists
Under AB5, all these people would become employees of the artist, which would be an untenable situation for many if not most independent music artists.
The writers of the letter — which include RIAA Chairman and CEO Mitch Glazier, A2IM President and CEO Richard James Burgess and Music Artists’ Coalition Co-President Susan Genco — want an exception created for their industry. Their organizations, which represent a very wide range of artists, have all agreed to the wording of the exemption, and they are asking people in the state to contact their legislators and demand action.
If the exemption doesn’t happen, the organizations expect that the independent music industry in California will largely move to places such as New York and Nashville. “Get ready, Nashville and New York — it looks like you’re about to have your own recorded music boom,” the letter warns.
Here’s the full letter.
California has always been a haven for artists and has inspired songs that are heard around the world. But a recent change in a law, about to get the stamp of approval by the California Legislature, will unintentionally drive independent artists out of the state. While changes in technology have made it possible for artists to remain independent and create music on their own terms, this law will force them to make that music outside of California.
AB5 is being proposed largely in response to the “ride-sharing” companies like Uber and Lyft. The bill is intended to make it more difficult for so-called “gig economy” companies to classify workers as independent contractors rather than employees. We understand, appreciate and support the legislators wanting to protect hundreds of thousands of people in our state who are working without benefits, while the corporations involved reap the profits of their labor.
Unfortunately, the law is so broad it will have outsized consequences for independent musicians: treating them like Uber and Lyft’s executives rather than their drivers. The proposed bill states that any person who provides services that relate to the usual course of the “hiring entity’s” business is an employee of that entity. This makes sense for large corporations; it does not make sense for the independent artist who is trying to make music.
Artists work with many people to help them realize their vision: producers, engineers, musicians, publicists, managers, music video creators, dancers, background vocalists, etc. Under this new law, an artist in California could become the employer of all of these people.
Think of a 14-year-old kid in her bedroom making music with friends: Is she capable of becoming an employer and providing punch cards, time sheets, guaranteed meal breaks, health care, retirement benefits, minimum wage, overtime pay calculation, mandatory tax withholdings? Imagine N.W.A, when they were making independent records in Compton, faced with the expense and administrative tasks of becoming employers.
In 2019, the opportunities to make music independently are endless, and this law threatens to quash that innovation for:
The young girl in her basement recording on Garageband who invites a friend over to play bass. She is an employer.
The rapper who hires a mixer to punch up the levels on the production. He is an employer.
The producers in a garage who hire musicians to play on a track. They are an employer.
The songwriters who ask people to play on a demo so they can pitch it to an artist to cut: employers.
People who organize “song camps” where songwriters come together and write songs: employers
This is not an issue of big versus small; this is small struggling to become big. There are tens of thousands of kids with dreams in California — dreams to become a recording artist, a singer, a producer, a rapper, a small label executive, a major label executive. The unintended consequence of this law is that they will have to move out of California to pursue this dream.
Get ready, Nashville and New York — it looks like you’re about to have your own recorded-music boom …
… Unless there is something we can do about it. AB5 allows industry exemptions. We all agreed on an exemption — and when was the last time recording artists, indie and major labels agreed on something? We have a good deal of union support, but not all of them.
If you care about allowing independent artists, songwriters, and labels to remain in California, we need your help. Call your local state legislature, your union, the AFM. Tell them how important it is to you that we keep the music in California. Ask them to support an exemption to AB5 for independent recording in California.
But hurry: The bill becomes law on September 13.
California has always protected independence for artists. Don’t let AB5 pass without an exemption for independent artists and force independent music-making out of California.
Mitch Glazier for the Recording Industry Association of America, Dr. Richard James Burgess for the American Association of Independent Music and Jordan Bromley and Susan Genco for the Music Artists Coalition.