Rideshare companies oppose major change in California’s labor laws

Companies like DoorDash, Uber and Lfyt say they will lose millions of dollars if gig workers are reclassified as employees for their companies.

rideshareUber, Lyft and some of the other ‘gig economy’ companies are working on a ballot measure that would oppose a major change in California’s labor laws.

AB 5, passed earlier this year and signed by Governor Newsom, makes it harder for companies like Uber and Lyft to classify their drivers as independent contractors. The new law, which takes effect on Jan. 1, makes the drivers for the rideshare companies employees instead of independent contractors. The move would guarantee a minimum wage for anyone who drove for the service and give them access to worker benefits such as workers compensation.

The gig economy companies like DoorDash, Uber and Lfyt say they will lose millions of dollars if gig workers are reclassified as employees for their companies.

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