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Senate Bill AB5 was approved by the California State Senate 29-11 on a party-line vote and by the Assembly 56-15. The bill was signed by Governor Gavin Newsom in September of 2019 and took effect on January 1, 2020. AB5 changed the California “gig economy” by eliminating an employer’s right to hire someone as an “independent contractor” instead of as an employee. As an employee, a worker is entitled to certain benefits, such as worker’s comp, unemployment insurance, health insurance, paid time off, and certain protections under the hiring company. For additional information, contact an attorney at West Coast Trial Lawyers for a free consultation.
Though many of these concepts seem idealistic and even fair, companies such as Uber and Lyft fought hard to repeal the bill before it even took effect.
Colossal Corporations such as Uber, Lyft, and DoorDash joined forces in a $90 million campaign against this progressive legislation. Recently, the trio released a California ballot measure called “Protect App-Based Drivers & Services Act” that would provide drivers with some benefits, but ultimately exempt them from all the benefits of AB-5. Voting will most likely take place in November of 2020.
The Protect App-Based Drivers & Services Act ensures that drivers will make 20% more than the state’s minimum wage, as well as 30 cents per mile for expenses such as gas and wear and tear to their vehicles. However, the Protect App-Based Drivers & Services Act has been criticized because a 20% increase does not compensate drivers for time spent between trips. In addition, the act has a health care stipend that goes into effect after a driver works for 15 hours a week. The stipend increases after the driver works for 25 hours in a single week and will only cover about half of a driver’s medical expenses.
The California assemblywoman who introduced the state legislation, Lorena Gonzalez is quoted as saying, “Their wage floor suggests if If I’m a cashier, I’m only paid while there’s a customer in my line, not when I’m waiting for the next customer.” Gonzalez is also concerned that the mileage reimbursement is only half of the IRS rate of 58 cents per mile for business miles.
Though the future of California’s “gig-economy” may still but up in the air and it can be difficult to understand your rights, especially in case of an accident.
If you have sustained injuries in the city of Los Angeles or surrounding areas as a result of an accident, a personal injury attorney at our firm can help you recover financial compensation for the losses you have suffered, including medical bills, property damage, lost wages, loss of consortium, emotional distress and pain and suffering. We have offices in Glendale, Bakersfield, Irvine, Beverly Hills, Long Beach, Riverside, Pasadena, San Bernardino, Woodland Hills, and Solana Beach. Our offices specialize in: