Please ensure Javascript is enabled for purposes of website accessibility
Newsom Rocks the Gig Economy, Signs AB 5 Labor Bill
gvw_ap_news
By Associated Press
Published 6 years ago on
September 18, 2019

Share

SACRAMENTO — Gov. Gavin Newsom on Wednesday signed sweeping labor legislation that aims to give wage and benefit protections to California rideshare drivers at companies like Uber and Lyft and to workers across other industries.
The closely watched proposal could have national implications as lawmakers, businesses and unions confront the changing nature of work and the rise of the so-called gig economy.

Uber, Lyft, and DoorDash are pushing Newsom to come up with a third option for gig companies and have threatened to spend $90 million on a 2020 ballot measure if they are not successful.
“California is now setting the global standard for worker protections for other states and countries to follow,” Democratic Assemblywoman Lorena Gonzalez, the author of Assembly Bill 5, said in a statement.

Higher Standard for Independent Contractors

The legislation makes it harder for companies to classify workers as independent contractors instead of employees, who are entitled to minimum wage and benefits like workers compensation.
While it affects up to a million workers, according to Gonzalez, its effect on ridesharing and meal delivery companies has seized the spotlight.
Uber, Lyft, and DoorDash are pushing Newsom to come up with a third option for gig companies and have threatened to spend $90 million on a 2020 ballot measure if they are not successful.

Newsom Wants Gig Workers to Have Collective Bargaining

Newsom, for his part, said he wants to keep negotiating with labor and business leaders to ensure that gig workers can collectively bargain.

“I will convene leaders from the Legislature, the labor movement, and the business community to support innovation and a more inclusive economy by stepping in where the federal government has fallen short.” — Gov. Gavin Newsom
There’s been a dispute over whether giving them employee status in California would allow them to form a union, because the National Labor Relations Board still considers gig workers to be independent contractors.
“I will convene leaders from the Legislature, the labor movement, and the business community to support innovation and a more inclusive economy by stepping in where the federal government has fallen short,” Newsom wrote in his signing statement.

Uber Says It’s Prepared to Defend Its Model

Uber general counsel Tony West has suggested Uber will not automatically start treating its drivers as employees come Jan. 1 and defend its current model if it faces legal challenges.
Uber and Lyft have offered to give employees a base hourly wage, access to benefits and a right to bargain across the industry.
“We’ve engaged in good faith with the Legislature, the Newsom administration and labor leaders for nearly a year on this issue, and we believe California is missing a real opportunity to lead the nation by improving the quality, security, and dignity of independent work,” Uber spokesman Davis White said in a statement.

Patterson Criticizes Signing

Assemblyman Jim Patterson (R-Fresno) criticized Newsom signing the bill.
“He just sentenced millions of Californians, stripping away from them, the opportunity to use their labor, to work in circumstances and situations that suit their time and their desires. It is, honestly, an attack on freedom,” Patterson said.
He also is concerned about the future of innovation.
“There is going to be somebody in a garage in California that is going to develop the next new thing,” Patterson said. “Because of what this governor is doing today, they’ll probably take it out of the state to develop it. These are the consequences of this kind of intrusive legislation.”

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

UP NEXT

US Marines Carry out First Known Detention of Civilian in Los Angeles, Video Shows

Israel and Iran Bombard Each Other, Trump Says He Can ‘Easily’ End Conflict

18 hours ago

Trump Vetoed an Israeli Plan to Kill Iran’s Supreme Leader, US Officials Say

18 hours ago

Fresno Man Arrested in Fatal DUI Crash on Trimmer Springs Road

A man is dead and three others are injured following a rollover crash Saturday evening on Trimmer Springs Road that investigators say was ca...

16 hours ago

16 hours ago

Fresno Man Arrested in Fatal DUI Crash on Trimmer Springs Road

Mourners pray during the funeral of a Palestinian killed in what the Gaza health ministry says was Israeli fire near a distribution center in Rafah, at Nasser hospital in Khan Younis, in the southern Gaza Strip, June 15, 2025. REUTERS/Hatem Khaled
16 hours ago

Israeli Military Kills 41 People in Gaza, Medics Say

Bullet holes mark the front door of Minnesota state Senator John Hoffman, who was shot alongside his wife, Yvette, in what is believed to be an attack by 57-year-old suspect Vance Luther Boelter, who is also the lead suspect in the shooting deaths of senior Democratic state assemblywoman Melissa Hortman and her husband, Marc, in Champlin, Minnesota, U.S., June 14, 2025. REUTERS/Tim Evans
18 hours ago

Manhunt for Gunman Who Shot Two Minnesota Lawmakers Enters Second Day

Israelis take shelter at the side of a highway as siren sounds following missile attack from Iran on Israel, in central Israel June 15, 2025. REUTERS/Oren Ben Hakoon
18 hours ago

Israel and Iran Bombard Each Other, Trump Says He Can ‘Easily’ End Conflict

President Donald Trump speaks as he attends a military parade to commemorate the U.S. Army's 250th Birthday, on the day of his 79th birthday, in Washington, D.C., U.S., June 14, 2025. REUTERS/Carlos Barria/File Photo
18 hours ago

Trump Vetoed an Israeli Plan to Kill Iran’s Supreme Leader, US Officials Say

19 hours ago

Newsom Wanted To Fast-Track the Delta Tunnel Project. The Legislature Slowed the Flow

21 hours ago

Five Weeknight Dishes: Seven Ingredients or Fewer, Because Summer

22 hours ago

Big Fresno Fair Unveils Second Wave of 2025 Concert Acts

Help continue the work that gets you the news that matters most.

Search

Send this to a friend