Article Image
IPFS News Link • California

California just dropped a bomb on the gig economy -- what's next?

•, By Andrew J. Hawkins

California just grievously wounded the gig economy.

But Assembly Bill 5, the California bill that was approved by the state Senate on September 10th, is only the beginning of a long fight over the relationship between gig companies like Uber and Lyft and the drivers they employ. While it is likely to become law — it still needs its amendments to pass the Assembly, but once it reaches the desk of Governor Gavin Newsom, he will sign it — the real fight is what comes next.

Uber and Lyft will try to staunch the bleeding by doing what they do best: spending obscene amounts of money. The companies say they will fund a ballot initiative in 2020 to ask voters to approve the creation of a new category for ride-hail drivers. The enforcement of the law will present a range of obstacles for state regulators. And drivers will still face tough hurdles before they can achieve their ultimate goal: the formation of an independent union.