SACRAMENTO, CA (KMJ) – California Governor Gavin Newsom announces he has signed the bill AB 5.
The bill would force companies like Uber and Lyft to classify workers as employees — instead of independent contractors.
It grants gig workers full employee rights including a minimum wage, paid sick days, workers comp and the right to a union.
And just like that… #AB5 is law! pic.twitter.com/HIvsEdxVVg
— Lorena (@LorenaSGonzalez) September 18, 2019
Others say that the law will cost them business.
This will be devastating for California businesses. I’m most likely going to shut down. I can’t take a 30% increase in cost. So now my 18 employees that were making $25-40 dollars an hour will be jobless but I’ll go start another business. Good job Democrats 👍🏻
— Charles (@KingCharles1919) September 18, 2019
Rideshare companies Uber and Lyft have responded to AB5 saying it will cost them potentially $90 million combined.
