California Senate passes landmark bill extending new protections to employees of so-called gig economy companies, including Lyft and Uber—essentially forcing companies to recognize formerly contract workers as employees.
The California Senate passed a landmark bill that would extend new protections to employees of so-called gig economy companies including Lyft and Uber, essentially forcing companies to recognize formerly contract workers as employees.
"The law has basically made it impossible for Uber and Lyft, at this time, to continue to run their businesses based on an independent contractor-type platform," Ngo-Bonnici explained. California State Sen. Andreas Borgeas tweeted prior to the vote that the AB5 would"limit an individual's ability for flexible employment and destroys entire industries across California. Independent contractors and small businesses are the backbone of a thriving California economy."
Adrian Durbin, a Lyft spokesman, told ABC News in a statement that the California leaders"missed an important opportunity to support the overwhelming majority of ride-share drivers who want a thoughtful solution that balances flexibility with an earnings standard and benefits."
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