Uber, Lyft Poised to Lose Fight Against California Bill to Label Drivers Employees: Proposed law likely to upend the business model of companies that rely on ‘gig workers’

by VCUBNFO

 

From the WSJ.

The bill already passed the State Assembly 59-15 and is expected to be voted on in the state Senate before the legislative session ends on Friday, possibly as soon as Monday night.

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The companies have argued the bill would introduce new costs and logistical challenges that would be bad for them and many of their employees, who prefer job flexibility. If the measure becomes law, it is expected to have national repercussions given California’s economic importance and history of creating precedent-setting business regulations.

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Some gig-economy executives have also indicated they may challenge the bill in court if it becomes law.

It will be interesting to see this impacts Uber, Lyft, the drivers, and cost.