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New California law makes it easier for some workers to be contractors; but not Uber, Lyft drivers

NORTHERN CALIFORNIA RECORD

Sunday, November 24, 2024

New California law makes it easier for some workers to be contractors; but not Uber, Lyft drivers

Legislation
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Voters will decide this fall whether Uber and Lyft drivers in California are considered employees eligible for benefits or independent contractors. | Pixabay

SACRAMENTO, Calif. – A bill that recently passed the California legislature and signed into law by Gov. Gavin Newsom makes it easier for freelance writers, musicians, photographers and other occupations to continue working as contractors.

Under the controversial AB 5 freelance writers, for example, would automatically be classified as employees if they produced more than 35 submissions in a year - the new law, AB 2257, abolished the 35-story limit.

AB 2257, however, does not help one group of independent contractors: drivers for Uber, Lyft and other services, who would be classified as employees under AB 5. They are pushing a ballot initiative in November that would allow them to remain classified as independent contractors rather than employees.

"AB 2257 does nothing to help me and the nearly one million app-based drivers in California who want the ability to stay independent contractors,” Jim Pyatt of Modesto, who retired from the newspaper business and drives ride-booking part-time, told the Northern California Record. “Thousands of drivers will be out in force this fall telling voters we support Prop 22 because we want to keep our flexibility and independence and gain earnings guarantees and benefits like health care. Voters will support Prop 22 and support drivers, not special interests in Sacramento."

Prop 22 was written by Uber, Lyft and other app companies “to deny their drivers rights and protections like paid sick leave, workers compensation or unemployment benefits,” the California Labor Federation said in a release on its website. The companies are spending over $100 million to promote its passage.

But supporters of Prop 22 point out that 80% of drivers work less than 20 hours a week, have other jobs and obligations, and cannot work regular shifts. That would include many retirees and students trying to earn extra money.

Prop 22 would preserve the right of those individuals to choose independent work, supporters say.

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