Uber, Lyft, Postmates Refuse To Comply With California Gig Economy Law

Uber, Lyft, Postmates Refuse To Comply With California Gig Economy Law

A new law in California makes it harder for companies to classify workers as contractors. Companies like Uber, Lyft, and Postmates are pushing back, refusing to comply and filing lawsuits. Workers have mixed opinions on whether they agree with the new law. Some appreciate the flexibility of working as a contractor, while others want better wages and the ability to bargain collectively.

Key findings

"Supporters of Assembly Bill 5 say companies have been exploiting contract workers for years because they aren't considered employees who get benefits like health coverage and workers' compensation. The law touches many industries, from trucking to tech to certain medical professions. AB5 does include carveouts for professions such as dentists and attorneys."

"The legislation codifies a ruling from the California Supreme Court that established a new test for classifying workers. Gonzalez says she hopes city attorneys and the state attorney general will hold gig companies responsible if they do not comply with the law."

"Industries such as trucking, journalism and those involved in the gig economy are pushing back by filing suit in federal court. But some companies are scrambling to figure out how to comply. In December, the sports website SB Nation announced it would terminate contracts with hundreds of freelancers in light of California's new labor law."

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