California Governor Gavin Newsom recently signed Assembly Bill 5, which restricts businesses’ use of independent contractors in the state. The law was signed into law last week.
The bill amends Section 3351 and adds Section 2750.3 to the California Labor Code and amends Sections 606.5 and 621 of the Unemployment Insurance Code. It requires companies like Uber and Lyft to treat contract workers as employees.
The legislation was brought about by concerns that gig economy giants like Uber and Lyft have taken advantage of their independent contractors. However, the effects of the bill will impact other industries as well. In addition to ride-hailing drivers, food-delivery couriers, janitors, nail salon workers, construction workers, and franchise owners all may now be reclassified as employees.
Read more at Attorney at Law Magazine.