California Assembly Bill No. 5

Under the new law of California Assembly Bill No. 5, many rideshare drivers and other independent contractors working in the ride hailing industry will have to be reclassified as employees, which would make them eligible for legal protections, sick leave, a minimum wage, and other rights that employees in traditional employment relationships enjoy. Advocates of the law, which include labour activists and unions, argue it is necessary to provide economic security for the ride hailing workforce. Opponents, including ride hailing firms Uber, Lyft and DoorDash, argue the law jeopardises their business model that relies on flexibility and plan push for a ballot proposal to exempt themselves from the new rules. Overall, more than one milion workers in California will be impacted by the new rules.

Metadata

  • Initiative
  • Legislation
  • United States
  • Government
  • Yes
  • no specific sector focus
  • Lyft, Uber
  • employment status, income, social protection
  • English
  • 2021
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