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Uber and Lyft Drivers in California May Become Employees

Source | Linkedin | Harry Campbell | Owner at The Rideshare Guy

California Assembly Bill 5 (AB5) passed this week and is expected to be signed into law by California Governor Gavin Newsom, but what does it all mean for Uber and Lyft drivers in California? Well, for years, gig work platforms like Uber and Lyft have come under criticism for treating drivers like employees while classifying their workforce as independent contractors and now that could finally be coming back to bite them. The bill currently awaits Governor Gavin Newsom’s signature. Once signed into law, the legislation will take effect January 1, 2020. Pro AB5 drivers have been vocal with their support but in surveying drivers, we have found that a majority are actually against AB5.

Here’s what readers are saying:

A commenter on YouTube believes this new ruling will undermine the gig economy industry as a whole, and will lead to driver terminations:

“This bill undermines the gig economy industry as a whole for the following reasons: Companies can curtail full-time employment of employees to avoid cost of benefits in general. Cost of employment than shifts over to customers which can drastically reduce business. Fewer rides = less earnings for drivers. And then you have the issue of many drivers being given “pink slips” as many drivers will be terminated when this transition takes place. Be careful what you wish for…”

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