Government, ICT, HR - New Rules For Gig Economy
California lawmakers approved a sort of bill of rights for workers in the so-called "gig economy", which could force companies like Lyft and Uber to reclassify them from contractors to employees.
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The legislation, known as Assembly Bill 5 (AB5), enjoyed broad support from the Democratic Party presidential candidates, including Senator Bernie Sanders of Vermont and Sen. Elizabeth Warren of Massachusetts. It has the potential to change the employment status of more than a million low-wage workers in California, not just gig workers at companies like Uber, Lyft, and food delivery services such as DoorDash.
The ride hailing companies are investigating legal challenges to the law. Earlier, they had proposed establishing a US$21 per hour "minimum wage" for California drivers to avoid admitting the status of the gig workers. The companies are also working on a ballot initiative to ask voters to exempt them from AB5.