Gig Economy Companies Responding to New California Law
On Wednesday, California Governor Gavin Newsom signed Assembly Bill 5 (AB5), a law that will classify some independent contractors as employees and takes effect January 1. Companies such as Lyft and Uber Technologies, whose employees are among those that might be reclassified, redoubled both their resistance to the law and plans to negotiate again with relevant labor unions. At the same time, these companies are making noise about initiating a ballot-measure campaign to rewrite the standards for independent contractors.
The Wall Street Journal reports that Newsom has offered to negotiate a compromise between the companies and unions. Earlier, Uber, Lyft and DoorDash said they would put in $90 million to “back a ballot-measure campaign.” Uber, which maintains that its drivers are not employees under the law’s guidelines, is “seeking to expand the coalition to include other gig-economy companies.”
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