California Bill Makes App-Based Companies Treat Workers as Employees

September 12, 2019

CA state capitolWith the recent approval of SB 5 on Sept. 11, 2019, a landmark bill requiring companies like Uber and Lyft to treat contract workers as employees, Ken Jacobs, chair of the UC Berkeley Labor Center, has been commenting on how this move could reshape the gig economy and the debate over whether the nature of work has become too insecure.

SB 5 passed in a 29-to-11 vote in the State Senate and will apply to app-based companies, despite their efforts to negotiate an exemption. On Wednesday morning, the Assembly gave its final approval, 56 to 15. California’s governor, Gavin Newsom, endorsed the bill this month and is expected to sign it. Under the measure, which would go into effect Jan. 1 2020, workers must be designated as employees instead of contractors if a company exerts control over how they perform their tasks or if their work is part of a company’s regular business. Read more:

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