As if Freelance and contractors didn’t already have a difficult time maintaining business and a side income.
The State of California is making it more difficult for companies to hire contract workers — but gig companies like Lyft, Uber, postmates (a food delivery platform) are refusing to reclassify their conglomerate of drivers from contractor/freelance to employees.
The law has been named Assembly Bill 5 (AB5), it states companies have been exploiting contract workers for years because they aren’t considered employees who get benefits like health coverage and workers’ compensation.
The law encompasses industries, from technology to trucking and also certain medical professions.
Postmates and Uber has filed a lawsuit in federal court challenging AB5.
Drivers on all sides of the debate have weighed in. A rising group called Gig Workers have mobilized drivers to demand better wages and the opportunity to collectively bargain. The group lobbied lawmakers to pass AB5.
However, the contractors/freelancers fear losing their flexibility that comes with setting their own hours.
Flexibility is one of the main reasons people take on extra jobs to drive with companies like Uber/Lyft, and Postmates.
Does AB5 seems to be another way to hurt the little man who’s simply trying to make a honest living? Or maybe their trying to get what owed to the workers?
Freelancers have the freedom to work when theye have time. Allowing the flexibility to work and care for the need of their families.
Most contractors and gig workers have families that they are trying to take care of.
Is this possibly all about making someone pay for everyone having to get healthcare benefits ?
The trucking industry, journalism, and side hustle businesses aren’t taking this sitting down. They’ve decided to fight back.
Federal Lawmakers can expect plenty push back on this new law. Sounds like the courts will be back logged some more.
This article was inspired by an article on npr.