A controversial new law in California is widely referred to as protection for Uber and Lyft drivers in the “Gig Economy,” but it makes no references to ride-sharing services — and certainly isn’t limited to one industry.
California’s controversial labor bill has passed. Experts forecast more worker rights, higher prices for services
A controversial piece of legislation passed the California Legislature late Tuesday evening, codifying and clarify a landmark state Supreme Court decision that limits whether companies can classify their workers as independent contractors.
Expected to have wide-reaching implications that resonate across the country — including posing an existential crisis for businesses built with independent, on-demand labor — the bill is now on its way to Gov. Gavin Newsom’s desk.
“This is one of the few times in recent history when so many people will be impacted by a single decision,” said Ryan Vet, an entrepreneur, and gig-economy expert who founded Boon, an on-demand health care platform. He said he sees positives and negatives in the new law, that is “good for the workers, but will also implode the gig economy as we know it today” with increased costs.
California Assembly Bill AB-5 will certainly trigger similar laws nationwide. The emphasis seems to be on the ride-sharing industry, but it affects everyone working as an “independent contractor” in any part of our economy.
What’s your take?
- What jobs will AB-5 really affect?
- How will it affect employers and consumers?
- Is AB-5 a gift to third-party “contracting firms” that hire and rent Gig Economy workers to employers?
- If this law is cloned in your state, how will it affect you?