According to a recent report by San Jose Spotlight, Councilmember Matt Mahan has identified several employees as consultants in his mayoral campaign finance forms. This violates Assembly Bill 5, which was created in 2019 to limit the number of companies hiring employees as independent workers. The law was first created to target rideshare companies that have a history of sparing employee benefits and higher wages.
Mahan’s campaign hired 18 consultants in 2022 and about 10 are in high school or college, according to the Spotlight’s reporting. All of the employees have been paid flat fees, rather than an hourly wage or salary.
Campaign consultants or pollsters with their own businesses are normally exempt from AB 5, but lower-level workers, such as phone bank workers, should be classified as employees, according to an information guide by Sutton Law Firm. The state could penalize Mahan for misclassifying employees as contractors – a civil penalty that could range from $5,000 to $25,000.
Mahan’s campaign will end in a run-off with Santa Clara County Supervisor Cindy Chavez in November to replace Mayor Sam Liccardo, who has held the office for nearly eight years.
