The Growing Backlash Against AB5, California's New Gig Economy Law
California's new labor law, AB5, was meant to help Uber and Lyft drivers - and others - get hired as traditional employees with the hope this would increase their pay and financial security.
But the broadly worded and vague language of the new law is leading to a wide range of unintended negative consequences.
It's also resulted in a growing backlash among independent workers as well as organizations that hire them.
For example, Business Insiders 'It feels cold and heartless': Hundreds of California freelancers have been fired before the holidays over a state law meant to help Uber and Lyft drivers covers a mix of freelancers who have lost work because of the new job.
Key quote:
A new California state law meant to restrict the gig economy has caused companies like Vox Media to cut jobs for freelancers directly before the holidays.
The loss, or potential loss of work, has led to both freelance journalists and independent truckers filing lawsuits challenging the law.
Uber, which already said it would not comply with the new law, also joined with Postmates to challenge the law in court.
Translators and interpreters, another industry with a lot of independent workers, are also looking to the courts for help as they lose work.
And some companies, with Wonolo being a good example, are simply leaving California because of the law.
We've also heard from a number of corporations that they will no longer hire California freelancers. One thing they will do instead is hire freelancers in other states and beyond AB5's reach.
We expect to see many more examples of the unintended consequences of AB5 - and related legal actions - in the coming weeks and months.
Our hope is the legislature and governor will recognize the law needs to be reworked and do so.
