On September 18, 2019, Governor Gavin Newsom signed California Assembly Bill 5 (AB 5) – codifying the “ABC test” used to classify California workers as either employees or independent contractors. The ABC test was first introduced in April 2018 in the California Supreme Court decision Dynamex Operations West, Inc. v. The Superior Court of Los Angeles County (Dynamex). Beginning on January 1, 2020, the ABC test will be used for most occupations to determine if a worker should be classified as an employee, as opposed to an independent contractor, for California Wage Orders, the Labor Code, and the Unemployment Insurance Code.
Under the Dynamex ABC test, a worker is presumed to be an employee unless the employer proves that the worker:
(A) Is free from the control and direction of the company in performing work, both practically and in the contractual agreement between the parties; and
(B) Performs work that is outside the usual course of the company’s business; and
(C) Is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the company.
Could ABC be as easy as 1-2-3?
🙈 Peek a Boo!
The ‘B-prong’ of ABC test asks whether “the service is performed outside the usual course of business of the employer.” One of the 11 Borello test factors similarly asks “whether the person performing work is engaged in an occupation or business that is distinct from that of the company.” So that's the crux of the problem here.
Interestingly, the key to solving the "ABC" challenge — for United Math Circles Foundation (UMCF) — requires one to question prior beliefs about two things: (i) what UMCF does; and (ii) who works there.
We start by examining the very definition of what constitute an employer-employee relationship. We use that knowledge to precisely delimit UMCF's role in the context of what workers — and non-workers alike — actually do. So re-framing the "ABC problem" this way leads naturally to the following "ABC proof" that is looking rather promising.
Ever seen two elephants Tango?
A.1 United Math Circles Foundation is set up to streamline administration of Math Circle Programs — near and far.
A.2 Math Circle Educators enjoy free rein leading math circle sessions supported by administrative backing of UMCF.
B. Accordingly, the scope of usual business of United Math Circle Foundation (UMCF), a 501(c)(3) non-profit organization established in 2014 to run back-office administration of math outreach programs for elementary, middle and high school students — commonly referred to as Berkeley Math Circle or San Jose Math Circle — is at its core an increasingly systematized "back stage" administrator — separate and distinct from that of "front stage" circle leaders in the role of guest speakers and/or instructors delivering live performances in lecture halls or classrooms.
C. In a math circle, a rotating cast of 'math circle educators' — whether as guest speakers or instructors — are brought together to match the pedagogical needs of one or more 'math circle programs' via the professional network of its designated 'math circle director' with great care, attention and effort — often from among visiting scholars, guest lecturers, university professors, or practicing mathematicians who don't otherwise engage with children in their academic profession — but nevertheless from time to time (e.g., once or twice a year) accept invitations from a math circle director to participate in math circle programs that aim to acculturate a younger audience in the practice of mathematics in a university setting, or to engage young circlers in an advanced course of mathematics taught the right way using characteristic pedagogical styles of their own choosing, or to deliver public lectures that exemplify the diverse nature of the mathematical profession in the real world.
In view of the above, an honorarium (e.g., $235 per 2-hour session) for a guest speaking role, or a stipend for an instructional role (e.g., 1, 2 or 3-hour sessions weekly over 15-week period or daily over 5 or 10-day period), is customarily offered to math circle educators depending on situation — although some may choose to donate to charity or decline the remuneration altogether. Payment is processed expeditiously by UMCF thus obviating the need to go through the accounting office of an institutional sponsor which adds overhead — e.g., may be as high as 45% — and reported to the IRS on Form 1099-MISC (or 1099-NEC starting 2020) in a manner that is not materially different from that of other math circles administered under their institutional sponsors within the state of California.
Q.E.D.
N.B. But what of math circle directors? UMCF is commonly engaged by math circle directors to handle back-office administrative work for math circle programs that they run. So UMCF is in fact a service provider; and each circle director its client — not to be mistaken as a worker!
D. Thinking Outside The Circle — A handy way to turn program surplus into non-wage income commensurate with circle director Z's time investment.
As a matter of fact, absent employer-employee relationship between UMCF and circle directors, the whole issue of ABC testing has been rendered moot — "Look Ma, no ABC!"
We know that a math circle director's commensurate remuneration — in the form of non-wage income — can be easily derived from program surplus, e.g., by way of some "magic formula" that calibrates to the time sheet. So remuneration for each circle director remains undiminished, e.g., drawing upon pooled reserve in case of program deficit but otherwise any surplus is added back to the reserve. In any case, the benefit of net program surplus — after deducting circle director's formulaic remuneration — accrues to UMCF just like before. This is how UMCF can be sustainably financed over the long term — should it decide to offer services to other math circles around the Bay Area or bring onboard aspiring circle directors to create new math circles.
Here we propose shrinking the narrative footprint of United Math Circles Foundation — so an"umbrella organization" for math circles (circa 2014~2019) evolves to become the "administrative backbone" for math circles starting 2020.
This idea is strikingly similar to the concept of microkernel — near-minimum amount of software that can provide the mechanisms needed to implement an operating system (e.g., Mac OS X is based on a microkernel design).
“The specific purpose of this organization is to [ unify the administrative back-ends of math circles making it easier for circle leaders to set up and run quality math programs that ] enrich mathematical education, to [ support the advancement of ] mathematical knowledge and skills among children, and to [ administer ] other charitable and educational activities associated with this goal as allowed by law.”
— United Math Circles Foundation (circa 2020)
E. Each remaining '1099' is also not doing jobs that are typically done by employees in the same industry as UMCF — not an educational testing service, not a help desk nor an accounting firm — so all 1099's have been properly accounted for!
Think fast — how many circles like this in California today?
"We'd better get better at organizing ourselves here — or we'll all be doing this line dance till the cow comes home!"
“As the number of people involved in the Math Circle community grew, so did the interest in creating a more formal means to exchange ideas and provide support for Math Circle administrators, instructors, parents, and teachers. Initial efforts included special sessions on mathematical outreach at the Joint Math Meetings and MathFest. These provided opportunities for Math Circle leaders to gather and develop preliminary plans to start a professional community.”
“... the National Association of Math Circles (NAMC) would be a program of MSRI. It would serve as a network for the broader community, including those leaders who were engaged with mathematical outreach programs but not as directly connected to the academic community.”
“Thus, MSRI created NAMC in 2008 with the intention to nurture the growth of Math Circles by seeding the creation of additional Math Circles in the USA: building a community of Math Circle leaders through which novice and existing leaders would be connected, encouraged, and inspired; providing high-quality resources that help Math Circles build and sustain effective programs; and documenting and disseminating the impact of Math Circle programs across the nation. Since its inceptions, NAMC has organized several Math Circles conferences, further developed their Math Circle website, and developed a successful grant program to launch and sustain Math Circles.”
— "The establishment and growth of Math Circles in America" (Wiegers & White, 2015)
“This study was designed to determine the impact of participation in a math circle... much current research which emphasizes that mathematics is a social activity and consistent with our findings in this case study. We further found that circle leadership and the location of the circle are potentially important factors in its effectiveness.”
— "Math Circles: A Tool for Promoting Engagement among Middle School Minority Males" (Kennedy & Smolinsky, 2015)
"Yield the Floor" — Sam Vandervelde (2011)
— Robert Heinlein
“A math circle is a social structure where participants engage in the depths and intricacies of mathematical thinking, propagate the culture of doing mathematics, and create knowledge. To reach these goals, participants partake in problem-solving, mathematical modeling, the practice of art, and philosophical discourse. Some circles involve competition, others do not; all promote camaraderie.”
— Mark Saul (2006)
"Do you like my new spin? I invented this move for Dance Dance Revolution that goes round and round — like this!"