In the flood of bills considered in the final days of the California Legislature's last session there was one which didn't make it to Governor Newsom's desk. On a partisan vote, the California State Senate rejected an amendment from Republican Senator Patricia Bates to Assembly Bill-323 that she claims would have significantly helped community newspapers keep their doors open. The Senate passed AB-323 that limits regulatory relief from the mandates included in AB-5, the state's gig worker law, to one year.
AB-5 require companies that hires independent contractors to reclassify them as employees, with a few exceptions. Newspapers are not among the exceptions. Companies that do reclassify gig workers as employees will have to pay the workers minimum wage, offer paid time leave and health insurance, and pay unemployment insurance and worker’s compensation benefits, and that could seriously impact the bottom line.
"It is unfortunate that the majority party rejected my amendment to help community newspapers for the long-term," said Senator Bates. "Instead, we had to settle for a short-term band-aid to cover the economic wounds created by AB 5. While AB 323 is a step in the right direction, the fact remains that we need a permanent fix to save local journalism."
AB-5 would no longer apply to ride-sharing companies Uber and Lyft if voters pass Proposition-22 in November. That ballot measure would not affect how AB-5 is applied to other types of workers.