SACRAMENTO, Calif. (KCAL) – California lawmakers have passed legislation with major implications for ride-share companies Uber and Lyft.
The bill could make tens of thousands of ride-share drivers full-time employees instead of independent contractors. As independent contractors—or so-called “gig economy” workers like Uber and Lyft drivers— miss out on certain benefits.
Some examples are minimum wage, overtime pay, and worker’s compensation.
If enacted, the law would make it harder for California employers to treat workers as independent contractors.
Companies say ‘independent-contractor’ status gives drivers the freedom to set their own schedules and work for multiple companies at the same time.
Lyft indicated that it is ready to fight back against the legislation, which the governor is expected to sign.