California advances radical bill forcing companies to treat people whom they pay to do work as 'employees'
“Contributing to [income inequality] is the misclassification of workers, where companies eager to save on labor costs identify workers as ‘independent contractors’ rather than employees,” Newsom wrote. “Workers lose basic protections like the minimum wage, paid sick days and health insurance benefits. Employers shirk responsibility to safety net programs like workers’ compensation and unemployment insurance. Taxpayers are left to foot the bill.
Though the measure isn’t going to have any trouble moving through the California state legislature, it’s faced plenty of pushback from the private section. Companies the bill ostensibly aims to target, such as Uber and Lyft, have been lobbying for exemptions, and Newsom said on Tuesday thatwith the ride-sharing giants and other gig economy companies trying to find ways to mitigate the impact the bill’s passage would have on their bottom line.
Uber and Lyft — who along with food-delivery service Door Dash have said they will spend $90 million on a ballot measure to fight the bill — have argued their businesses rely on independent contractors, and that AB5 would restrict the schedule flexibility many of these contractors value. California State Assemblywoman Lorena Gonzalez, who introduced the bill, disagrees. “They have claimed the measure will eliminate the flexibility in workers’ lives,” she wrote Wednesday in. “To be clear: There is nothing preventing these companies from offering flexible scheduling to employees. Flexibility is and will always be at the employer’s discretion.”
“It is time to stand up for the rights of workers,” she added. “They deserve better, and we can no longer afford to look the other way.”
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