It’s official. California’s senate passed AB 5 on Tuesday, a bill that requires business to hire workers as employees rather than independent contractors. The controversial bill is setting new precedents for the gig economy after heated back-and-forths from lawmakers, union representatives, and gig companies like Uber and Lyft.
Though the bill is still contingent on its amendments being passed and Gov. Gavin Newsom’s signature, the impact and precedent it’s setting could change the fabric of the gig economy, from giving gig workers benefits and unionization protections, to restructuring how gig companies achieve profitability.
On this segment from Business Casual, we spoke with Sergio Avedian, senior contributor for The Rideshare Guy, to get a look from the ground on how this bill is being received by the industry, and what it could mean for California’s gig economy.
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