A new California law designed to limit the use of 'gig' workers threat...
- A new California law designed to limit the use of “gig” workers threatens to drive up labor costs for companies that rely on inexpensive freelance drivers to make fast deliveries of everything from restaurant meals to household goods.
California Governor Gavin Newsom signed the bill, known as AB5, on Wednesday. It goes into effect on Jan. 1 and could roil the gig economy if companies are forced to replace independent contractors with employees who earn at least the state minimum wage of $12 per hour and are eligible for expense reimbursement and benefits such as health insurance and paid time off.Research firm Second Measure says Postmates, DoorDash and UberEats reap the greatest percentage of U.S.
Gig delivery companies have been crucial to tackling one of the biggest challenges facing traditional and online food and product sellers: expensive “last mile” deliveries to customer doorsteps.
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