Assembly Bill 5 comes into effect in the new year
As the new year came in, it brought with it the controversial the Assembly Bill 5. This bill had been a subject of a lot of controversies as it went into effect in the wake of a campaign of $110 million for an initiative of state ballot. This campaign has been funded by the companies which this bill is targeting. The bill is meant for the transformation of many contractors which in the state have been working for the companies like Instacart, Lyft, Uber and similar companies into employees. The reclassification is going to mean that there are entitled to the benefits such as the hourly minimum wages and compensations and also health care potentially.
However, the ringing of the new year doesn’t exactly mean that the drivers of Uber and other such contractors are automatically going to become employees. As per this new contract the workers are going to be considered as employees unless they have been proven otherwise. The companies have been adamant at proving them to be otherwise.
This next fight phase is going to happen in the courts as the workers and the potential officials of California are seeking the enforcement of law and the companies have been seeking to evade it.
Before the law had gone into effect, a few of the workers of these companies have filed their suit against this state and sought to stop this law. As per the statements of the lawmakers, the plaintiffs have argued that the bill had targeted these workers and treated them in a different manner to the traditional workers and therefore violates the clauses of equal protection in the constitutions of US as well as California.