California Bill Signals ‘Brand New Ball Game’ For Gig Economy Businesses

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With details still being hashed out and the governor still in negotiations with powerhouse companies, the California Legislature has passed a bill expected to make the gig economy workforce more expensive to maintain.

Source: Stas_V / iStock / Getty Images

The legislature passed Assembly Bill (AB) 5 late September 10, a bill that largely codifies the 2018 Dynamex Operations West, Inc. v. Los Angeles County Superior Court decision. That decision made it harder to justify classifying workers as independent contractors instead of employees.

Dynamex and the new bill are putting major stress on businesses such as ride-share giants Uber

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