Please ensure Javascript is enabled for purposes of website accessibility
Assembly Votes to Tighten Rules on Independent Contractors
gvw_ap_news
By Associated Press
Published 5 years ago on
May 30, 2019

Share

SACRAMENTO — 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.

“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.” — Assemblywoman Lorena Gonzalez

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.

“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.

 

Bill a Work in Progress and Can Change

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.

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

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.

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.

DON'T MISS

Crescent View West High Celebrates New Clovis Home

DON'T MISS

Fresno Man Sentenced to 29 Years for Sexually Assaulting Children and Dog

DON'T MISS

Bulldogs’ Two-Position Standout Tommy Hopfe Signs With Rockies

DON'T MISS

Artists, Vendors Plan to Defy City’s ArtHop Crackdown

DON'T MISS

Former Bulldog QB Jake Haener: I Have a ‘Rare Form of Skin Cancer’

DON'T MISS

The Many Names of GOP Vice Presidential Nominee JD Vance

DON'T MISS

‘Fed Up’ Dyer, Councilmembers Unveil Plan to Crack Down on Street Campers

DON'T MISS

House Republicans Slam Trump’s ‘Worst Choice’ for VP Pick JD Vance

DON'T MISS

Companies Cut Prices to Boost Sales, Consumers Respond

DON'T MISS

Stay Cool, Fresno!

UP NEXT

The Many Names of GOP Vice Presidential Nominee JD Vance

UP NEXT

Warner Bros. Discovery Sues NBA for Not Accepting Its Matching Offer

UP NEXT

Uber, Lyft, DoorDash Workers Remain Contractors Due to California Supreme Court Ruling

UP NEXT

Netanyahu Will Meet Trump at Mar-a-Lago, Mending a Yearslong Rift

UP NEXT

Recall of Boar’s Head Deli Meats Announced During Investigation of Listeria Outbreak

UP NEXT

Spicy Dispute Over the Origins of Flamin’ Hot Cheetos Winds up in Court

UP NEXT

Arson Suspect Named as Park Fire Near Chico Triples in Size

UP NEXT

Eye-Popping Construction Costs Intensify California’s Chronic Housing Shortage

UP NEXT

A Man Got Third-Degree Burns Walking on Blazing Hot Sand in Death Valley, Rangers Say

UP NEXT

CalFire Makes Quick Arrest of Arson Suspect in Explosive Park Fire Near Chico

Artists, Vendors Plan to Defy City’s ArtHop Crackdown

7 hours ago

Former Bulldog QB Jake Haener: I Have a ‘Rare Form of Skin Cancer’

8 hours ago

The Many Names of GOP Vice Presidential Nominee JD Vance

8 hours ago

‘Fed Up’ Dyer, Councilmembers Unveil Plan to Crack Down on Street Campers

8 hours ago

House Republicans Slam Trump’s ‘Worst Choice’ for VP Pick JD Vance

9 hours ago

Companies Cut Prices to Boost Sales, Consumers Respond

9 hours ago

Stay Cool, Fresno!

9 hours ago

Warner Bros. Discovery Sues NBA for Not Accepting Its Matching Offer

10 hours ago

Tanker Plane Crash Kills Firefighting Pilot in Oregon as Western Wildfires Spread

10 hours ago

Will Bonta Election Lawsuit Reverse the Will of Fresno County Voters?

10 hours ago

Crescent View West High Celebrates New Clovis Home

The arch of colorful balloons over the doorway of a storefront on Shaw Avenue in Clovis was a clue that something exciting was happening on ...

6 hours ago

6 hours ago

Crescent View West High Celebrates New Clovis Home

7 hours ago

Fresno Man Sentenced to 29 Years for Sexually Assaulting Children and Dog

7 hours ago

Bulldogs’ Two-Position Standout Tommy Hopfe Signs With Rockies

7 hours ago

Artists, Vendors Plan to Defy City’s ArtHop Crackdown

8 hours ago

Former Bulldog QB Jake Haener: I Have a ‘Rare Form of Skin Cancer’

8 hours ago

The Many Names of GOP Vice Presidential Nominee JD Vance

8 hours ago

‘Fed Up’ Dyer, Councilmembers Unveil Plan to Crack Down on Street Campers

9 hours ago

House Republicans Slam Trump’s ‘Worst Choice’ for VP Pick JD Vance

MENU

CONNECT WITH US

Search

Send this to a friend