California Groundbreakers

Policy and a Pint: How California Is Changing "Gig Economy" Employment

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Synopsis

Is the jig up for the “Gig Economy” in California? Governor Gavin Newsom just signed California’s Assembly Bill 5 (AB5) legislation into law — and it’s one of the most contentious bills this year that we’ll probably still be talking about (and voting on) during Election Year 2020. AB5, which kicks in on January 1, changes the test used to determine whether a worker is an employee or an independent contractor. The legislation will affect at least one million workers, ranging from ride-hailing drivers and food-delivery couriers to construction workers and franchise owners, who could now all be reclassified as employees. Proponents of AB5 say the new bill gives gig economy workers more access to basic workplace protections, like a minimum wage and unemployment insurance. Those against it say it will prevent contract workers from having flexibility and control over their schedules, and it will make running businesses in California even more expensive. Besides knowing how this may affect your job, you'll