Uber and Lyft pickup sign Uber, Lyft and DoorDash have said they will spend $90 million to back a ballot referendum in 2020 aimed at exempting them from the proposed law. (Photo: Shutterstock)

Gig workers in California will get a boost from AB5, a new bill passed by the California Senate and backed by Governor Gavin Newsom that will make it tougher for companies to classify them as independent contractors instead of as employees.

A Reuters report says that ride-hailing companies like Uber and Lyft will feel the brunt of the legislation, which “would codify a 2018 California Supreme Court decision, Dynamex Operations West Inc v. Superior Court, that set out a new standard for determining whether workers are properly classified as independent contractors.” The court decision found that state wage laws cover workers as employees when the company controls their work or when they are integral to its business.

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.

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