California’s AB 5 and the Legal Battle Ahead: Ratified

California Assembly Bill 5 is a piece of legislation that holds massive ramifications for the gig economy, specifically rideshare companies like Uber and Lyft. It was signed into law on September 18, 2019 in an attempt to limit the ability to classify workers as independent contractors rather than employees of a company.

Governor Gavin Newsom said of the bill, “Assembly bill 5 is landmark legislation for workers and our economy. It will help reduce worker misclassification—workers being wrongly classified as “independent contractors” rather than employees—which erodes basic worker protections like the minimum wage, PTO, and health insurance benefits.”

Uber, Lyft, and DoorDash have all expressed their displeasure with the bill, signaling they will not be in compliance. What are their claims and why are they so vehemently opposed?

To answer those questions our host Daniel Litwin spoke to Nicole Moore with Rideshare Drivers United, who provided the perspective of the driver, and Professor William Gould, who provided necessary context on the dynamics of labor law in the United States.

Tune into Ratified every Tuesday morning at 9AM CST to get the latest on the intersection of policy and business.

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