A bill that would re-classify 8 million employees in our state is currently making its way through the legislature. AB5 would require businesses who hire independent contractors to make most of them employees. The bill is said to target Uber and Lyft drivers to force those large companies to offer benefits, workers comp, unemployment insurance and pay additional taxes.
Google, Facebook and all the big tech companies employ thousands of independent contractors. Eight hundred thousand Migrant farm workers would also be impacted. Small business owners say the bill would devastate mom and pop businesses that employee a few 1099 employees. Our conversation with one owner, Shayne Reid is below.
AB5 has passed the assembly and is in the senate appropriations committee. It was placed in something called the suspense file. The State finance department did say it would be costly to implement. Its currently in the suspense file while they take a look at how costly it would be, however, could come out and make it to the full senate floor at any time which is the last stop before the governor's desk.