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CA Bill To Change Gig Economy?

A 2018 decision by the California Supreme Court in the landmark case Dynamex Operations West, Inc. v. Superior Court of Los Angeles made it much more difficult for companies to misclassify workers as independent contractors versus employees. Most labor laws in CA do not apply to independent contractors (think Uber drivers, Amazon delivery and Door Dashers...) meaning only employees get the full protection of California's strong labor laws. Now a Democratic assemblywoman from San Diego is sponsoring 'AB 5,' a bill meant to codify and expand the Dynamex ruling. At the center of the debate over AB 5 is its impact on “gig economy” companies like Uber and Lyft, though it would also affect older, more established industries like retail and trucking. AB 5 passed the California State Assembly in May 2019 and is moving its way through the legislature. Should the bill pass, California workers normally considered independent contractors will be deemed employees who are entitled to minimum wages, overtime pay, protections from discrimination and a host of other benefits afforded by the CA labor code.

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