California landmark workers’ rights bill sends waves through gig economy firms

Rideshare giants Uber and Lyft say they will avoid reclassifying their drivers and are prepared to take the issue to state voters

California legislators passed a first-of-its-kind bill targeting contract workers late Tuesday night, in a move that will potentially revolutionize the ways gig economy giants such as Lyft and Uber engage with employees.

The bill, known as AB5, paves the way for workers in the so-called gig economy to get holiday and sick pay and has garnered attention across the US and beyond, largely owing to the size of California’s workforce. Its passage positions California to be “the national leader on this critical issue”, Steve Smith of the California Labor Federation said.

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