Hundreds of thousands of contract workers in the state could be reclassified into full-time employees in the foreseeable future, according to a report by San Francisco Chronicle. Thanks to California bill AB5, gig-economy companies including Uber Technologies and Lyft will be required to guarantee minimum wage for workers along with the benefits afforded to employees. These include overtime pay, sick leave and family leave, among others.
The California Senate passed the bill late Tuesday night. Next, it will go back to the state Assembly for the go-ahead on new amendments. If approved, the bill could drastically change the future of independent contract workers. They will turn into employees after the law takes effect on January 1, 2020.
If the bill passes in the Assembly, Governor Gavin Newsom is most likely to sign it as well. “I am proud to be supporting Assembly Bill 5, which extends critical labor protections to more workers by curbing misclassification,” he earlier mentioned in The Sacramento Bee on Labor Day.
The bill has huge support from advocacy groups and liberal politicians while app-based companies and their political backers are opposing the bill claiming that “they value the flexibility of independent contractors”, as reported by San Francisco Chronicle.