California lawmakers have rewritten the rules of employment across a wide swath of industries in legislation that could grant hundreds of thousands of workers new job benefits and pay guarantees.
which adopted a strict, three-part standard for determining whether workers should be treated as employees, modeled on a Massachusetts test.In a Labor Day opinion article, Newsom, who has signaled that he would like to forge a compromise with app-based tech companies, nonetheless offered a strong endorsement of the bill. He noted misclassified workers “lose basic protections like the minimum wage, paid sick days and health insurance benefits.
In one letter to lawmakers, California building trades unions, representing 450,000 Teamsters, roofers, painters, boilermakers and other workers, called construction “the original gig economy,” noting “our employers face intense competition from the underground economy … unscrupulous contractors that win bids by misclassifying workers.”
Lobbying against AB 5 was vociferous with the California Chamber of Commerce and some 15 trade groups pressing for exemptions. Trucking associations filed suits over the new misclassification rules and fleets of independent owner-operators circled the Capitol in their big rigs, horns blaring. Under the court’s new test, a worker is an employee if his or her job forms part of a company’s core business; if the bosses direct the way the work is done; or if the worker has not established an independent trade or business.
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