Why some employers are fighting a new California labor law

Published Updated 4 Min Read

California state capitol building

A new labor law went into effect in California at the start of the year that says employers in the state must hire workers as employees, not independent contractors, giving freelancers and gig workers the same protections and benefits as their full-time counterparts.

While supporters of the bill say companies have been exploiting contract workers, some industries are pushing back. Employers Uber and Postmates filed a legal challenge before the bill became law claiming a violation of constitutional rights and discrimination against tech platforms and their workers. Uber, Lyft and DoorDash have launched a ballot measure asking voters to give ride-sharing companies an exemption to the law. Additionally, a federal judge issued a temporary restraining order that blocked California from enforcing Assembly Bill 5 on the trucking industry.

Amanda Schiavo
Associate Editor

Amanda Schiavo is an associate editor of Employee Benefit News. Follow her on Twitter at @SchiavoAmanda.


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