A landmark bill has been passed in California that entitles gig workers to protections usually reserved for employees, such as the minimum wage, health insurance and unemployment benefits. Californians supported the bill, Assembly Bill 5 (AB5), by almost two-to-one, according to a poll.
It will be applicable in cases where workers perform a central function of the company's core business. The bill means employers would now be required take a test, 'the ABC test', to prove if their workers are actually independent contractors rather than employees.
Uber, Lyft, and DoorDash - companies that depend on the gig economy - have already committed a total of $90 million to oppose the bill's implementation.