Uber and Lyft Refuse to Comply With New California Gig Economy Law
Every state is overdue to block these disruptive companies from circumventing laws that protect consumers and workers, standards and policies submerged by disruption. Just because you rename a function or call call a job something else doesn’t mean you get to be a scofflaw.
A new law that went into effect in California Jan. 1 is supposed to make it harder for companies to hire workers as contractors — but gig companies like Uber, Lyft and the food delivery platform Postmates are refusing to reclassify their fleet of drivers as employees.
Supporters of Assembly Bill 5 claim companies have been exploiting contract workers for years because they aren’t considered employees who get benefits like health coverage and workers’ compensation.
The law touches many industries, everything from trucking to tech to certain medical professions. AB5 does include carveouts for other professions, including dentists and attorneys.