The U.S. California state senate approved a bill targeting contract workers, a move that would revolutionize the potential of economic giants such as Lyft and Uber to engage employees. Under the law AB5, companies such as Uber and Lyft will grant rights to freelancers such as holidays, sick leave and health insurance.
11-29 passed by the law, which will enter into force after the signature of Governor Gavon Newsom’contracted employees will be counted as permanent staff. The law, which involves one million people working in the province in this way, is expected to pave the way for similar regulations in other states. However, while this labor law gives rights to working people, it could disrupt the ongoing business model of companies such as Uber and Lyft. Let’s also note that Uber, Lyft and Dashboard have previously created a $30 million fund for voting to exempt their employees from the law.
Uber Legal Counsel Tony West told reporters that, contrary to some rhetoric, the new law does not automatically reclassify driving stakeholders from independent contractors to employees, and the new law does not give drivers an advantage. Said. In fact, he adds, the law does not yet provide clear information about drivers.
Let’s just say West is right that the bill doesn’t automatically make every Uber driver an employee. Because most of the jobs, such as unemployment insurance claims and workers’ compensation claims, will take place behind the scenes at california regulatory agencies. However, it is important to note that the drivers claim that“Uber operates in a different way thanit should be”.
As a result, the new bill has clearly shaken technology companies that work with business models such as Uber and Lyft. Other states are preparing to take their own measures on the issue. Tony West, however, said uber would survive, regardless of the possible consequences.
We will see exactly what the law brings in the future.