Share

California Assembly votes to tighten rules on contractors

Share

SACRAMENTO, Calif. (AP) — California residents working for companies like Lyft and Uber would get the rights of employees entitled to a minimum wage and workers compensation under a law the state Assembly passed on Wednesday.

The sweeping bill, which now goes to the Senate, carries new standards defining whether workers are employees or independent contractors, upending how workers are treated in industries from trucking to the burgeoning gig economy.

Under those standards, for example, workers could only be classified as independent contractors if they are free from the control or direction of an employer and they do work outside a company’s usual course of business.

The measure, Assembly Bill 5, includes exemptions for some sectors, such as physicians and insurance agents.

Democrats and major labor unions backing the bill contend it will protect workers’ rights.

Trending:
Prince Harry Named in Major Sex Trafficking Lawsuit Against Rapper

“Big businesses shouldn’t be able to pass their costs onto taxpayers while depriving workers of the labor law protections they are rightfully entitled to,” said Assemblywoman Lorena Gonzalez, a Democrat from San Diego who authored the bill.

Many industries have raised concerns, however, arguing that hiring independent contractors provides flexibility for companies as well as workers.

The ridesharing company Lyft issued a statement shortly after the bill passed, emphasizing its opposition and contending that the legislation would force many of its drivers to become employees.

“Lyft drivers overwhelmingly prefer the freedom of working where, when and how much they want,” the company said.

One sector after another has sought exemptions to the proposed law. The California News Publishers Association has sought an exemption to cover freelance journalists and newspaper carriers.

Companies are responsible for covering Social Security and Medicare taxes, unemployment insurance as well as workers compensation for employees.

Gonzalez said the bill is a work in progress and can change.

Still, Gonzalez said setting clear standards in law for labeling workers as independent contractors would give certainty to businesses following a California Supreme Court ruling last year on the issue.

California is home to many of the companies that gave rise to the gig economy. Silicon Valley is a political force in California’s capital but so, too, is labor.

Related:
Former MSNBC Host Chuck Todd Furious After Network Hires Former RNC Chair Ronna McDaniel

The bill comes as companies like Uber and Lyft are facing mounting pressure. Drivers for the companies went on strike and staged protests in major cities earlier this month to draw attention to precarious working conditions as well as the financial pressures of gig work.

The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

Truth and Accuracy

Submit a Correction →



We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
Share
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands. Photo credit: @AP on Twitter
The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.
Location
New York City




Conversation