INSUBCONTINENT EXCLUSIVE:
Assembly Bill 5, the gig worker bill opposed by the likes of Uber, Lyft and DoorDash, has passed in the California State Senate
This comes shortly after California Governor Gavin Newsom officially put his support behind AB 5 in an op-ed.AB5 would ensure gig economy
workers are entitled to minimum wage, workers’ compensation and other benefits.The state Senate passed the bill in a 29 to 11 vote this
The state Assembly, which previously approved the legislation, will now vote on amendments to AB5
If the Assembly passes the legislation, which it is expected to, it will go to Gov
Newsom who has expressed support for the measure.Assuming Gov
Newsom signs the bill, it will go into effect Jan
1, 2020.“AB5 is only the beginning,” Gig Workers Rising member and driver Edan Alva said in a statement
“I talk daily to other drivers who want a change but they are scared
They don’t want to lose their only source of income
But just because someone really needs to work does not mean that their rights as a worker should be stepped all over
That is why a union is critical
It simply won’t work without it.”The bill, first introduced in December 2018, aims to codfiy the ruling established in Dynamex
v Superior Court of Los Angeles
In that case, the court applied the ABC test and decided Dynamex wrongfully classified its workers as independent contractors based on the
presumption that “a worker who performs services for a hirer is an employee for purposes of claims for wages and benefits…”Those who
work as 1099 contractors can set their own schedules, and decide when, where and how much they want to work
For employers, bringing on 1099 contractors means they can avoid paying payroll taxes, overtime pay, benefits and workers’
compensation.According to the ABC test, in order for a hiring entity to legally classify a worker as an independent contractor, it must
prove the worker is free from the control and direction of the hiring entity, performs work outside the scope of the entity’s business and
is regularly engaged in an “independently established trade, occupation, or business of the same nature as the work performed.”Uber and
Lyft, two of the main targets of this legislation, are adamantly against it
Last month, Uber, Lyft and DoorDash amped up their efforts to do whatever they can to prevent it from happening
That’s in part due to the fact that the companies cost of operating would increase.“Today, our state’s political leadership missed an
important opportunity to support the overwhelming majority of rideshare drivers who want a thoughtful solution that balances flexibility
with an earnings standard and benefits,” a Lyft spokesperson wrote in an emailed statement
“The fact that there were more than 50 industries carved out of AB5 is very telling
We are fully prepared to take this issue to the voters of California to preserve the freedom and access drivers and riders want and
need.”Uber, Lyft and DoorDash each put $30 million toward funding a 2020 ballot initiative that would enable them to keep their drivers as
independent contractors.Correction: AB5 must head back to the state Assembly for a vote on Senate amendments
TechCrunch has corrected the headline and article to reflect this.
