Date
22 January 2021

Tag

Active

Country
Non-EU Non-EU
Geographical scope
National
Type
  • Type

    Provision of insurance and social protection

    Legal
  • Type

    Regulation of passenger transport

    Legal
  • Type

    Working conditions

    Legal
View Initiative

Description

Under the new law of California Assembly Bill No. 5, many rideshare drivers and other independent contractors working in the ride hailing industry will have to be reclassified as employees, which would make them eligible for legal protections, sick leave, a minimum wage, and other rights that employees in traditional employment relationships enjoy. Advocates of the law, which include labour activists and unions, argue it is necessary to provide economic security for the ride hailing workforce. Opponents, including ride hailing firms Uber, Lyft and DoorDash, argue the law jeopardises their business model that relies on flexibility and plan push for a ballot proposal to exempt themselves from the new rules. Overall, more than one milion workers in California will be impacted by the new rules.


Additional metadata

Keywords
social protection, income, working conditions, employment status
Actors
Government
Sector
No specific sector focus
Platforms
Lyft, DoorDash

Citation

Eurofound (2021), California Assembly Bill No. 5 (Initiative), Record number 3036, Platform Economy Database, Dublin, https://apps.eurofound.europa.eu/platformeconomydb/california-assembly-bill-no-5-103099.