California has some of the most worker-friendly employment laws in the country. The state passed a law that completely changed independent contracting and caused a lot of issues for companies that used independent contractors.
Specifically, the new law changed worker classification by stating that independent contractors could not perform work that is part of a company’s main services. This change was especially devastating for gig workers and the companies employing them because these workers do the main service for the company.
Vox explains that the impacted companies had no choice but to fight back against this law, which meant introducing a bill to voters. Voters passed it, which made changes for specific gig workers. It was a victory for rideshare companies especially.
The changes in the law would exempt these companies from the section of the law that meant they would have to classify all workers as employees, allowing them to maintain workers as independent contractors.
Because rideshare companies use independent contractors to provide their services, this new law was incredibly important to the future of the industry in California. CNN explains that the new changes will help the companies, but there are many people who still have a concern for the workers.
The whole idea of the law changing the classification was to ensure workers had access to benefits and protections that employees have. This new exemption from that law means that workers lose out.
To appease those who had concerns for workers, the changes do allow for some benefits for these workers. Benefits include a minimum pay.