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Home / US / California passes laws to treat contract laborers as employees

California passes laws to treat contract laborers as employees



California approved a landmark bill on Tuesday to reclassify contractors to companies such as Uber and Lyft as employees.

Bill 5 was passed by the Senate with 29 to 11 votes, according to The New York Times, and applied to companies that use apps to manage their goods and services. It is now going to pass before the signing of the State Assembly Law and could end up on Governor Gavin Newsom's desk before the legislature goes into recess on September 13th.

Newsom has indicated its support for the move, saying tech companies and other employers undermine workers' basic protection such as "minimum wage, paid sick leave and health insurance benefits".

"The working people have lost their bargaining power," he wrote in a work published on The Day of Work in the Bee of Sacramento.

"Employers are not responsible for safety net programs such as employee compensation and unemployment insurance, and taxpayers have to pay the bill."

The milestone train will probably involve over 1

million workers in California.

Read More: Uber and Lyft Drivers Explain Why They Are Striking

According to Business Insider Transport Reporter Graham Rapier, the move could initiate a three-part test to determine a worker's status as an employee or employee independent contractor paving the way for workers to receive fair wages and company support.

Californian MP Lorena Gonzalez, who proposed the 2018 bill, said on Twitter that the move would "stop the misclassification of nearly one million" of Californian workers to be eligible for unemployment benefits.

The bill follows a year-long debate on how to better manage a gig-based economy as people begin to shift their employment to contract labor.

Several businesses that rely on temporary workers, such as Uber, Lyft and DoorDash, have pledged $ 30 million for a campaign to get rid of the law, the New York Times reported last month.

Gonzalez has said she does not foresee a successful compromise with the companies.

"Just pay your damned workers!" she wrote on Thursday on Twitter.

Lyft and Uber did not immediately respond to a Business Insider comments request.


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