While the gig economy often gets derided by worker advocates for being unfair to its workers, one aspect of the nature of gig work is often overlooked: it helps boost diversity to an almost unparalleled degree. The nature of the gig business is somewhat ruthless in that it cuts through a lot of bureaucratic red tape and aims directly and specifically to ensure that consumers get exactly what they are looking for: a specific skill to get the job done. Which means that, according to an op-ed in the Stamford Advocate, it creates a “truly level playing field irrespective of location, gender, age, or background.”
You can tell we’re well into the midst of the campaign season when presidential hopefuls reveal their plans for handling various societal concerns. We saw it as several Democratic candidates lined up to offer their plans to combat pay equity issues. Now, it’s the gig economy’s turn. A few months ago, South Bend Mayor Pete Buttigieg put forth a plan that called for greater protections for gig economy workers. Next up: Senator Bernie Sanders.
A federal appeals court decided last week that ride-share drivers engaging in interstate commerce while performing work for Uber should not be subject to the company’s arbitration agreement because of a recent Supreme Court ruling broadly interpreting a federal law exemption that applies to independent contractors. This September 11 ruling threatens to upend a pivotal tool that many businesses use to better manage workplace litigation and requires all gig businesses operating near state borders to take notice.
California Governor Gavin Newsom wasted little time by signing AB 5 into law earlier today, and his signing statement should cause quite a few eyebrows to be raised. It was no surprise that he signed the bill into effect; he said he would do as much in an op-ed posted several weeks ago in the Sacramento Bee. For those unaware, the new law will dramatically raise the bar for classifying a worker as an independent contractor in California by adopting the ABC test to just about all business arrangements (read our full summary here). But what was surprising was the contemporaneous statement he made while signing the bill into effect, signaling that the unionization of the gig workforce was the next step he’d like the state to pursue.
Good news for Postmates delivery drivers…and for gig economy businesses across the country. The company recently announced that it would offer accident insurance benefits to its entire fleet of independent contractor drivers, providing the kind of safety net that many gig workers crave.
“Anything you can do, I can do better.” That’s essentially the sentiment floating around Albany these days as New York lawmakers look enviously towards California and its groundbreaking new law that will soon revolutionize the way workers are characterized as contractors or employees. In the wake of California’s AB 5 – a bill that will codify the stringent ABC test into state law and make it extremely difficult for companies to classify their gig economy workers as independent contractors – New York legislative leaders are lining up to be next to reshape the state’s misclassification test, according to Newsday, “on a scale that one veteran lawmaker said would be similar to sweeping changes made during the Industrial Revolution.”
Negotiations continued right up until the end, but when the dust settled on California’s newest employment law, gig economy companies were not spared from the worst. Yesterday, state lawmakers passed AB 5, the state law that will not only codify the same ABC test introduced to the state in last year’s Dynamex decision but will take it a few steps further.