The Synthesis Bill 5, a shaky worker bill opposed by the likes of Uber, Levitte and Dordash, was passed in the California Senate. This comes shortly after California Governor Gavin Newsum formally introduced him Support behind AB 5 in the editorial.
The bill needed 21 votes to pass in the Senate. Passed in 29 to 11 votes this evening.
The next step is for Governor Newsom to sign the bill into law, which he expects to do. If the invoice is signed, it will take effect at the beginning of 2020.
"The AB5 member is just the beginning," Gig Workers Rising team member and driver Edan Alva said in a statement. “I talk every day with other drivers who want change but are afraid. They don't want to lose their only source of income. Working without them. "
The bill, which was first introduced in December 2018, aims to encrypt the verdict Dynamex Operations West, Inc. V. The Supreme Court of Los Angeles. In this case, the court applied the ABC test and Dynamex decided to incorrectly classify its workers as independent contractors on the assumption that "the worker performing services for hire is an employee for purposes of wage and benefits …"
Those who work as 1099 contractors can set their own schedules, determine when, where and how they want to work. For employers, bringing in 1,099 contractors means they can avoid paying salary taxes, overtime wages, benefits, and workers' compensation.
according to ABC testIn order to legally designate a worker as an independent contractor, the employment entity must prove that the worker is free from the control and direction of the employment entity, perform its work outside the business of the entity and regularly participate in "the trade, profession or independently established business of the same nature as the work performed."
In short, the AB-5, which has already passed the California General Assembly, will ensure that workers in the economic sector receive a minimum wage, workers' compensation and other benefits.
Uber and Lift, two of the main objectives of this legislation, strongly oppose it. Last month, Uber, Lyft and DoorDash made every effort to prevent this from happening. This is partly due to the fact that the cost of operating companies will rise.
Uber, Lyft and DoorDash have committed $ 30 million to fund the 2020 polling initiative that will enable them to keep their drivers as independent contractors.
Assuming the signing of the draft by the Governor of Newsom, it will take effect on 1 January 2020.