A California bill to dramatically curb the use of independent contractors rather than employees moves toward a final legislative vote. Will Gov. Newsom sign it?
would be among scores of occupations offered protection against long-documented workplace abuses.
App-based companies argue they offer a different employment model — innovative and flexible — and should thus be exempted from AB 5. They say that as contractors, their workers can set their own schedules and work for multiple companies. AB 5 couldAny such gig company carve-out is unlikely this year, but in an aggressive power play Uber, Lyft and DoorDash threatened Thursday to spend $90 million onunless the Legislature passes a new bill allowing them to avoid classifying drivers as employees.
In a letter this week, 75 law professors , economists and other academics urged Newsom and lawmakers not to exempt gig workers, writing that “California is poised to lead the country — indeed, to lead the world — with the strongest law on record to protect workers from misclassification.” The court set a strict new test: Workers must be treated as employees, not independent contractors, if their jobs are central to a company’s core business or if the bosses direct the way the work is done. For instance, a solo plumber with his own company who is hired by a bakery to fix a leak can be an independent contractor. But a plumber working regularly for a plumbing company and sent out on jobs must be an employee.
Over months of furious business lobbying, the bill’s author, Assemblywoman Lorena Gonzalez , has narrowed its scope with amendments exempting certain occupations, including doctors, lawyers, architects, engineers, accountants, insurance agents, Realtors, hairstylists, freelance journalists and financial brokers.
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