AB 5, enshrines in state law a California Supreme Court decision that significantly tightened the rules for classifying a worker as an independent contractor rather than an employee. It's overkill and solves a problem that doesn't really exist.
There are tens of thousands of independent contractors who apparently don’t feel the slightest bit exploited. And they don’t want anything to do with formal employment or unions. They include healthcare workers, psych therapists, budding musicians and truck drivers who own their own rigs.
Hundreds of independent contractors are asking employment lawyers how to deal with these new issues.
Uber and other rideshare companies changed all that. You enter where you’re going in an app, the driver accepts the ride, but doesn’t learn the destination until you’re in the car and on the way – and they can be penalized for cancelling rides.
That’s all going to change in California, with new independent contractor rules bringing back transportation discrimination.
California’s new independent contractor rules are having a lot of pretty bizarre effects. Aimed at Uber and Lyft but even has meant Vox severing ties with freelance writers in the state because California AB5 limits the number of articles they can write before having to be considered employees.
Uber needs to make its drivers independent contractors, and one of the changes they’re making is giving drivers destination information up front. This way they aren’t telling drivers where to go – the independent contractors choose for themselves.
Some drivers have the feature where they can see destinations before accepting a trip today. The rest will be getting it in the coming days, before AB5 goes into effect January 1.
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