• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Skip to navigation
Close Ad

The Spoon

Daily news and analysis about the food tech revolution

  • Home
  • Podcasts
  • Events
  • Newsletter
  • Connect
    • Custom Events
    • Slack
    • RSS
    • Send us a Tip
  • Advertise
  • Consulting
  • About
The Spoon
  • Home
  • Podcasts
  • Newsletter
  • Events
  • Advertise
  • About

California Senate Passes Gig Worker Bill AB5

by Jennifer Marston
September 11, 2019September 11, 2019Filed under:
  • Business of Food
  • Delivery & Commerce
  • Restaurant Tech
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to email this to a friend (Opens in new window)

The California Senate has passed Assembly Bill 5, legislation that entitles gig workers to things like minimum wage, workers compensation, and other benefits and labor protections.

The bill passed in a 29 to 11 vote. It now goes back to the state Assembly, where lawmakers will vote on amendments to AB5. If the Assembly passes the bill, it will go to California Gov. Gavin Newsom, who is almost certainly expected to sign it.

AB5 expands on a California Supreme Court decision from 2018 known as Dynamex, which dictates businesses use the ABC test to determine whether a worker is an employee or a contractor. According to the ABC test, a worker is an independent contractor only if they are free from control and direction of the hiring entity, perform work that’s outside the usual course of hiring, and engaged in, and “independently established trade or business of the same nature as the work performed.”

You can read a full breakdown of how the ABC test works here.

If signed by Gov. Newsom, AB5 would go into effect on January 1, 2020.

It would also be a huge blow to companies like Uber and DoorDash, who already struggle with profitability and who would see operating costs go up even more. The two companies, along with rideshare service Lyft, recently committed $90 million to support a ballot measure opposing the bill.

These companies, however, are already mired in controversy around how they treat their workers. In January of this year, Uber paid a $1.3 million misclassification settlement to workers. DoorDash, meanwhile, has battled a deluge of bad press around its controversial (though now revamped) tipping policy for drivers.

If signed into law, AB5 would drastically change the gig economy in the state of California, and, most likely, influence other Democratic-controlled states to pass similar legislation. In which case we would see the food delivery landscape drastically change as well.


Related

Get the Spoon in your inbox

Just enter your email and we’ll take care of the rest:

Find us on some of these other platforms:

  • Apple Podcasts
  • Spotify

Post navigation

Previous Post Newsletter: Pickleball and Alt-Protein, Our Startup Showcase and the Bees Knees (Well, Feet)!
Next Post Redefine Meat Raises $6M for 3D Printed Meat Alternatives

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Get The Spoon in Your Inbox

The Spoon Podcast Network!

Feed your mind! Subscribe to one of our podcasts!

A Week in Rome: Conclaves, Coffee, and Reflections on the Ethics of AI in Our Food System
How ReShape is Using AI to Accelerate Biotech Research
How Eva Goulbourne Turned Her ‘Party Trick’ Into a Career Building Sustainable Food Systems
Combustion Acquires Recipe App Crouton
Next-Gen Fridge Startup Tomorrow Shuts Down

Footer

  • About
  • Sponsor the Spoon
  • The Spoon Events
  • Spoon Plus

© 2016–2025 The Spoon. All rights reserved.

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.