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| California passes landmark gig economy rights bill | |
| (30 minutes later) | |
| California lawmakers have passed a bill that paves the way for gig economy workers to get holiday and sick pay. | |
| Assembly Bill 5, as its known, will affect companies such as Uber and Lyft, which depend on those working in the gig economy. | |
| Some estimates suggest costs for those firms would increase by 30% if they have to treat workers as employees. | Some estimates suggest costs for those firms would increase by 30% if they have to treat workers as employees. |
| But opponents of the bill say it will hurt those people who want to work flexible hours. | |
| Assembly Bill 5 would put into law a decision by the state's supreme court last year. Then, judges ruled that workers should be considered employees under state law if they are integral to a company's business or it tells them what to do. | |
| US democratic presidential hopefuls Elizabeth Warren, Bernie Sanders and Kamala Harris have all come out in support of the bill. | |
| But Uber and Lyft have both proposed a referendum on the decision. In a statement after the bill was passed, Lyft said: "We are fully prepared to take this issue to the voters of California to preserve the freedom and access drivers and riders want and need." | |
| The business models of gig economy companies are already under strain - Uber lost more than $5bn in the last quarter alone. Some estimates suggest that having to treat workers as employees, rather than independent contractors, could increase costs by as much as 30%. | The business models of gig economy companies are already under strain - Uber lost more than $5bn in the last quarter alone. Some estimates suggest that having to treat workers as employees, rather than independent contractors, could increase costs by as much as 30%. |
| Uber and rival ridesharing service Lyft joined forces to push back again the bill. They suggested a guaranteed minimum wage of $21 per hour instead of the sweeping changes the bill would bring. | Uber and rival ridesharing service Lyft joined forces to push back again the bill. They suggested a guaranteed minimum wage of $21 per hour instead of the sweeping changes the bill would bring. |
| But that pledge wasn't enough to sway California's Senate, and the state's governor Gavin Newsom is expected to soon sign the bill into law. That paves the way for California's 1 million gig workers to gain added rights next year. | But that pledge wasn't enough to sway California's Senate, and the state's governor Gavin Newsom is expected to soon sign the bill into law. That paves the way for California's 1 million gig workers to gain added rights next year. |