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California Debates Future of Uber, Lyft Drivers

Mike O'Sullivan

   LOS ANGELES - Ride share companies such as Uber and Lyft have changed
   transportation in hundreds of cities around the world, allowing people
   with vehicles to earn money as drivers and giving commuters an
   alternative means of travel. But are ride share drivers independent
   contractors or company employees? The issue is being debated in
   California, and a new law intended to settle the matter may raise as
   many questions as it answers.

   Increasingly, American companies are cutting their costs by using
   contractors. The so-called "gig" economy, based on short-term
   contracts, offers workers flexibility but little job security and fewer
   benefits. Governor Gavin Newsom [1]signed into law Assembly Bill 5, on
   Sept. 18, in an effort to clarify an earlier court ruling that imposed
   strict tests on the classification of workers as employees or
   contractors. The bill takes effect in January, but its impact remains
   unclear. Uber and Lyft say that for them, it changes nothing.

References

   1. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB5

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