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California Senate passes a bill to restructure gig economy; Uber, Lyft oppose it

What’s the news? California’s Senate passed a bill – AB 5 – which would require businesses to hire workers as employees and not independent contractors, barring a few exceptions. Why this matters: According to multiple reports, this bill will essentially disrupt the gig economy. Contractors, or gig workers, do not generally get the same benefits – minimum wage, overtime pay, paid leaves, insurance - as permanent employees. Once this bill is passed by California’s governor Gavin Newsom, it is tipped to force businesses into restructuring how they hire people. Details on the bill: The California bill, known as AB 5, expands a California Supreme Court decision last year known as Dynamex.  Under AB5, to hire an independent contractor, businesses must prove that the worker: Is free from the company’s control Is doing work that isn’t central to the company’s business…

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