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California governor signs labor law meant to fix the gig economy
It was really just a matter of time, but it's now official: California Governor Gavin Newsom has signed the state's Assembly Bill 5 into law. The measure is intended to reclassify many gig economy workers as employees by applying a test that determines whether or not they qualify as contractors. If they do, they have to be free from the control of a company, handle work beyond the typical scope of that company's business and routinely engage in an independently-formed business similar to the work they perform. In theory, this will force many ridesharing and courier companies to offer rudimentary labor rights like minimum wage, overtime and paid leave.
Uber intends to treat drivers as contractors despite California bill
California is likely on the cusp of making gig companies treat independent contractors as employees, but Uber doesn't think the potential law will change its business. In an update, legal chief Tony West maintained that Assembly Bill 5 (AB5) would let the ridesharing company continue to classify drivers as contractors if and when it becomes law. Uber wouldn't be exempt from AB5, the company claimed -- rather, it expected to pass the test that determined drivers' status, keeping them as contractors.
