The US state senate of California, by adopting a bill targeting contract workers, lyft and uber He undersigned a movement that would revolutionize the potential of economic giants such as. With the law AB5, companies like Uber and Lyft will grant freelancers rights such as holidays, sick leave and health insurance.
Adopted 29 votes to 11, Governor Gavon NewsomAfter the signature of the law will enter into force contracted employees will be considered permanent staff. The law, which concerns one million people working in this way in the state, is expected to pave the way for similar arrangements in other states. However, although this labor law grants rights to the employee, it may disrupt the ongoing business model of companies like Uber and Lyft. It should be recalled that Uber, Lyft and Dashboard have previously created a $ 30 million fund for voting, which they propose to exempt their employees from the law.
Uber Legal Counsel Tony West told reporters that, contrary to some discourses, the new law does not automatically reclassify driving stakeholders from independent contractors to employees, and the new law does not give drivers an advantage. In fact, the law does not provide clear information about drivers yet, he adds.
Let us note that West is right that the bill does not 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 the regulatory agencies in California. But the drivers “Uber operates in a different way than it should“at this point.
As a result, the new bill clearly shook up technology companies working with a business model like Uber and Lyft. Other states are preparing to take their own measures. Tony West, however, said Uber would survive regardless of these possible consequences.
We will see exactly what the law will bring in the future.