CA lawmakers just passed a landmark bill to reshape gig worker protections. Here’s what that means for companies like Uber and Lyft.
"Today, our state's political leadership missed an opportunity to support the overwhelming majority of rideshare drivers who want a thoughtful solution that balances flexibility with an earnings standard and benefits," Durbin said in a statement. "We are fully prepared to take this issue to the voters of California to preserve the freedom and access drivers want and need."
A DoorDash spokesperson said the company was disappointed by the decision, but said it was "committed" to establishing a guaranteed minimum wage, benefits and other protections for its gig workers. Representatives from Uber, Postmates and Instacart were not immediately available for comment. In a recent, Uber said the bill could lead to it hiring "far fewer drivers than we currently support," among other negatives.
"Uber is ready to do our part. That is why we have been at the table in California — with other rideshare companies, lawmakers, the Governor's office, and labor unions - to propose a truly innovative framework that we believe would preserve Uber's key benefit for drivers and key benefit for riders , while improving the quality and security of independent work," the company said.
If AB5 is approved, analysts widely expect Uber to pass the costs associated with the bill on to consumers, resulting in fare hikes. The bill is likely to bring the issue of gig economy workers' rights to the national stage, while potentially launching similar legislation in other states around the country.
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