This paper explores California Assembly Bill No. 5 and its effect on the “gig economy.” Notably, this paper takes an in-depth look at companies providing cheap services to California residents and the detrimental effects on California business models by labeling independent contractors as employees. I will contrast the Bill with previous California court decisions on independent contracts and the joint ballot initiatives being jointly proposed by Uber, Lyft, DoorDash, and other gig companies. Within this paper I will refer to workers as “drivers” for the sake of simplicity; however, it should be noted that these companies refer to them as “independent service providers” in an attempt to distance themselves from an employee classification.1 Additionally, I will outline the current legal attempts taken by Uber to prevent the Bill from going into effect. Lastly, I will speculate as to AB5’s future implications on the gig economy for California residents and the services they previously took for granted.
Bill AB5 and the Gig Economy,
29 U. MIA Bus. L. Rev.
Available at: https://repository.law.miami.edu/umblr/vol29/iss1/5