New Employment Regulations for Gig Workers in California Sparks Controversy

Have you ever used a rideshare application? Maybe you were heading out for a few drinks and didn’t want to drive under the influence, perhaps you were visiting a new city and didn’t want to rent a car, or maybe your vehicle was in the shop, and you needed a way to get to and from work.

Whatever your reasoning, most people would agree that Ubers and Lyfts are incredibly convenient.

What most people don’t realize is that up until recently, every driver on a rideshare app was classified as an independent contractor, which meant that they didn’t receive any employee benefits. This meant that they were responsible for their own healthcare, retirement savings, and took on the majority of the risk when it came to driving. Recently, that changed under California Assembly Bill 5.

Under AB5, ride-hail drivers must be classified as employees, and Uber and Lyft were told to secure worker’s compensation coverage for their drivers by July 1. This is fantastic for drivers who now have a safety net in the event that they are injured on the job but isn’t anything that ride-hail companies are happy about.

Uber has stated that they would like to expand benefits for their drivers but warn that legal regulations may threaten their entire business model in a way that could make rides more expensive and therefore lead to a loss of work for their drivers.

A spokesperson from Lyft argues that California drivers prefer to remain classified as independent contractors, citing an independent poll that found that 71% of people surveyed do not want to be employees.

These differences in opinion are still being worked out, but in the meantime, both drivers and riders are left confused.

If you are a rideshare driver and are feeling unsure about your classification, call Para Los Trabajadores in Glendale for help and assistance. We can help you to understand these new regulations when they will be enforced and how. We can also explain the benefits you enjoy as an employee vs. as an independent contractor.

So don’t wait. Call our law firm today with your questions and concerns. We are here to help you.