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Gov Newsom Signs Into Law Bill Limiting Use Of Independent Contractors

Businesses like Uber and Lyft will be limited in how they use independent contractors after California Governor Gavin Newsom signed a controversial bill into law. Assembly Bill 5 limits who can be classified as a contractor, and the ride share companies have promised to spend $90-million to get ballot initiative to repeal the law in front the voters in 2020.

Newsom signed it this morning in a private ceremony, then he issued a statement regarding the legislation to the members of the California Assembly.

"It will help reduce worker misclassification-- workers being wrongly classified as "independent contractors," rather than employees, which erodes basic worker protections like minimum wage, paid sick days and health insurance benefits," wrote the Democrat governor.

The governor also promising to meet with legislative, business, and labor leaders with the goal of gather support for "innovation and a more inclusive economy" by stepping in where he says the federal government has fallen short.

California Senate Republican Leader Shannon Grove believes the new law is flawed.

"Many Californians will now suffer from a law that plays favorites. Legislative Democrats rejected Senate Republicans' amendments to AB 5 which would have leveled the playing field for all independent contractors and helped industries that were excluded," wrote Grove. "Democrats, labor unions, and Governor Newsom, picked winners and losers with AB 5."

Read the full bill, click here: http://leginfo.legislature.ca.gov/


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