California Moves Closer To Classifying Uber, Lyft Drivers As Employees
Rideshare drivers in California came out in support of a state bill that would classify them as full employees. They celebrated a triumph in a long and nasty fight.
In January the bill was first submitted to the US state assembly by Rep. Lorena Gonzalez as Assembly Bill (AB5) which came up with a possible cure for the employment classification problem.
There are many legal tests to classify workers as a true independent contractor (like Uber or Lyft), or employees, but gig workers challenged their own status.
The pro-AB5 group and trade groups came out declaring victory. The Labor, Public Employment, and Retirement Committee of the California Senate voted in favor of the bill, 3 to 1.
However, the fight is not over yet. The bill will be reviewed by the state Senate Appropriations Committee, and if they approve it, the bill will be passed.
It is expected that the new law will be effective from January 1, 2020, if all goes well. This new law will have repercussions on Uber and Lyft services domestically and internationally.