The U.S. Department of Labor today announced that its final rule on independent contractors will be published in the Federal Register on January 7. Click here for a copy of the rule.
In the days after an election, one can find countless articles analyzing the results of myriad races, and to be sure, this year is no exception. While some aspects of the 2020 election remain unresolved one item of interest in California was settled decisively.
California voters passed Proposition 22, a ballot measure that exempts third-party delivery platforms from reclassifying drivers as employees. The vote was running 58% in favor of the measure and 42% against with over 70% of ballots counted. Uber, Lyft, DoorDash, Postmates and Instacart contributed roughly $200 million to support the measure, which allows the companies to work around AB-5, an initiative California Gov. Gavin Newsom signed into law in late 2019 that requires employers to reclassify independent contractors as employees. This election outcome preserves the business model of major food delivery companies in California. If Proposition 22 had not passed, the cost of transitioning gig workers to employee status would have financially gutted the already largely unprofitable restaurant delivery segment.
The California legislature passed legislation to address a crisis of its own making, AB 5, a law that has wreaked havoc in the state.
An order by a California appeals court has spared millions of people who use Uber and Lyft in California, at least for now.
The Progressive Policy Institute recently released a report on regulatory reforms for independent workers.
The state of California demonstrates its reluctance to foster a good business environment on a regular basis and with seeming alacrity, and one bugaboo du jour among the Golden State’s policymakers is the area of alleged
In 2019, the California legislature passed A.B. 5, a bill that dramatically curtails the use of independent contractors in the state. A.B. 5 establishes a three-factor “ABC” test to determine whether someone is an employee, or an independent contractor. Predictably, the law has upended many successful business models and cost some workers their jobs.
The fifth day of May is better known in many quarters as Cinco de Mayo, a celebration of the day that Mexico defeated the French empire at the
California’s AB 5 has taken another life: The new law has now killed off the 40-year old Lake Tahoe Music Festival.
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