A BILL WITH potentially huge implications for the so-called gig economy is making its way through the California state legislature this summer, laying bare cleavages within the labor movement. Companies like Uber and Lyft are seeking a workaround to the legislation, which would classify their drivers as employees rather than independent contractors, opening the door to a host of employment benefits. Some prominent labor unions, meanwhile, have been in talks with Silicon Valley, even as they voice their commitment to securing workers’ rights.
Sponsored by Lorena Gonzalez, a Democratic assemblywoman from San Diego, the bill, known as AB 5, seeks to codify and expand Dynamex Operations West, Inc. v. Superior Court of Los Angeles. The landmark 2018 California Supreme Court decision made it much more difficult for companies to classify workers as independent contractors rather than employees, who have access to workplace protection laws like minimum wage, overtime, unemployment insurance, and the right to join a union.