My driver, a professional photographer, works for Lyft to supplement his irregular income.
The passage of Assembly Bill 5 aims to make contract workers, like my Lyft driver, regular employees.
This will bring higher pay and benefits to retained workers, but it will also increase costs, which means higher prices for customers.
Under the new law, to be permitted to hire someone as a contractor-and not as an employee-businesses must pass what's known as the ABC test, which involves proving, in court, that the contractor is "Free from control and direction" of the hiring entity, that the contractor supplies similar services to other vendors, and that the work performed falls outside the "Usual course of the hiring entity's business." My Lyft driver, and many others, would be unable to satisfy those conditions.
Most gig workers in the U.S. don't work full-time in this capacity.
According to a Federal Reserve Board survey, only 18 percent of Americans perform gig work as their primary source of income.
Though contract work makes up less than 10 percent of household income for three-quarters of survey respondents, 45 percent consider it an important part of their income.
https://www.city-journal.org/california-ab5-gig-work-law
The passage of Assembly Bill 5 aims to make contract workers, like my Lyft driver, regular employees.
This will bring higher pay and benefits to retained workers, but it will also increase costs, which means higher prices for customers.
Under the new law, to be permitted to hire someone as a contractor-and not as an employee-businesses must pass what's known as the ABC test, which involves proving, in court, that the contractor is "Free from control and direction" of the hiring entity, that the contractor supplies similar services to other vendors, and that the work performed falls outside the "Usual course of the hiring entity's business." My Lyft driver, and many others, would be unable to satisfy those conditions.
Most gig workers in the U.S. don't work full-time in this capacity.
According to a Federal Reserve Board survey, only 18 percent of Americans perform gig work as their primary source of income.
Though contract work makes up less than 10 percent of household income for three-quarters of survey respondents, 45 percent consider it an important part of their income.
https://www.city-journal.org/california-ab5-gig-work-law
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