California Transformation of Gig Workers Into Employees
OVER $400 MILLION
IN RECOVERED WAGES
85 YEARS OF
California is on the cusp of passing a law, AB 5, which would effectively make gig workers, contractors who work for organizations on a short-term basis like Uber and Lyft drivers, employees and not independent contractors. The law – which California Governor Gavin Newsom has endorsed – essentially codifies the California Supreme Court’s 2018 Dynamex decision.
This law has national implications because Uber, Lyft and similar employers in the gig economy (think Instacart and Task Rabbit) are national companies. Accordingly, they most likely will not follow one set of rules for California and another for the rest of the country.
If the trend goes national as predicted, gig workers who become employees will have rights to minimum wage and overtime, as well as a myriad of other benefits, such as unemployment compensation, as well as increased protections under the federal and state employment laws against discrimination. Depending on the state, conferring “employee” status on workers also gives them the right to wait-time, meal breaks, and other work-related protections. This potentially could affect millions of workers nationwide.
If you have questions regarding your status as an independent contractor, please call the Shavitz Law Group at (561) 447-8888 or email us at firstname.lastname@example.org to learn about your rights.