California’s Senate approved, with a 29 to 11 vote, to require companies like Uber and Lyft to treat all contractors like employees. According to the New York Times, the bill should sail through the Assembly, and Governor Gavin Newsom has already indicated that he will sign it.
It fixes the primary function problem
Earlier this year, the National Labor Relations Board (NLRB) ruled that Uber drivers, and similar workers, were, indeed contractors because they
- Use their own equipment
- Set their own schedules
- Are free to work for competitors
- Are responsible for their own profit/loss
The one problem was that these drivers perform functions that are central to the business’s mission. This law solidifies this and says that because driving is the fundamental function of companies like Uber and Lyft, these people are employees.
This doesn’t just affect these app-based employers. It could affect hairdressers, nail salons, franchise owners, and any number of other contract-based industries.
To keep reading, click here: California Passes Legislation that May Kill the Gig Economy