California's senate has passed a bill that will require companies like Uber and Lyft to treat their contract workers as employees
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SAN FRANCISCO, CALIFORNIA - AUGUST 27: After pressure and protests from labor rights groups, like this one in August, California has passed a bill that could reshape the gig economy by requiring companies like Uber and Lyft to consider their contractors as employees. : California's senate has passed a bill that will require companies like Uber and Lyft to treat their contract workers as employees in a move that could transform the gig economy.
The bill clarifies and puts into law a decision made by the state's supreme court last year, when judges ruled that a company’s workers should be considered employees under California law if they areBefore the bill becomes law it will need to be approved by California's state assembly and then signed Governor Gavin Newsom. Newsom endorsed the bill earlier this month, along with presidential candidates Kamala Harris, Bernie Sanders and Elizabeth Warren.
Around 1 million workers in California would likely become employees when the law kicks in on January 1, 2020. Uber, Lyft, and DoorDash have opposed the bill and set aside a $90 million fund to campaign for a ballot to exempt them from Assembly Bill 5.
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