On Wednesday, California Governor Gavin Newsom signed Assembly Bill 5 (AB5), a law that will classify some independent contractors as employees and takes effect January 1. Companies such as Lyft and Uber Technologies, whose employees are among those that might be reclassified, redoubled both their resistance to the law and plans to negotiate again with relevant labor unions. At the same time, these companies are making noise about initiating a ballot-measure campaign to rewrite the standards for independent contractors. Continue reading Gig Economy Companies Responding to New California Law

The California State Assembly gave its final approval, in a 56-to-15 vote, for AB5, a bill that strikes a blow against the gig economy, forcing companies such as Lyft and Uber to treat contract workers as employees. The bill originally passed in the State Senate in a 29-to-11 vote and applies to all app-based companies. Governor Gavin Newsom, who endorsed the bill, is expected to sign it; the law will go into effect January 1. Uber has stated it will do “whatever it takes” to keep their drivers independent contractors. Continue reading California Law Limiting Gig Economy to Take Effect January 1

In an opinion released May 14, the National Labor Relations Board concluded that Uber drivers should be classified as independent contractors, and not company employees. According to the NLRB, Uber drivers qualify as independent workers because they are given “significant entrepreneurial opportunity” and “virtually complete control of their cars, work schedules, and log-in locations, together with their freedom to work for competitors of Uber.” The opinion is a victory for Uber and a setback for drivers and labor advocates, since it makes it more challenging for drivers to file labor complaints, form a union, or seek federal protection. Continue reading NLRB Considers Uber Drivers Freelancers, Not Employees

The California Supreme Court replaced the existing test for determining whether employees are independent contractors with another, simpler one used in Massachusetts and New Jersey. The former test relied on 10 factors, including the amount of supervision, to assess the company’s control over the worker. The new “ABC” test deems the worker an employee if he does a job that is part of the “usual course” of the company’s business. The ruling could have a profound impact on Uber and others in the so-called gig economy. Continue reading California Court Changes Test to Determine Status of Workers

A new report suggests that the commercial Internet now represents 6 percent of our gross domestic product. “The ad-supported Internet contributed about $1.121 trillion to the U.S. economy last year and is responsible for more than 10 million jobs across all 50 states, according to a new study commissioned by the Interactive Advertising Bureau,” reports The Wall Street Journal. The study found that the number of jobs created by the Internet more than doubled from 2012 to 2016, largely spurred by the rapid adoption of mobile devices, the transition to e-commerce, and the growth of a new gig economy. In regards to size and scope, “About 86 percent of the ad-supported Internet economy falls outside of New York City, San Francisco, Boston, the Washington, DC area, and Seattle.” Continue reading Commercial Internet Now Supports More Than 10 Million Jobs

E-commerce giant Amazon launched a new delivery system this week called Amazon Flex. The Uber-like model offers individuals with their own vehicles and an Android smartphone the opportunity to deliver packages for $18-25 per hour. Drivers have the option of two-, four- or eight-hour shifts. In addition to a car and an Android phone for managing deliveries with the Flex app, drivers must be over 21 and pass a background check. The new system, initially rumored back in June, works with Amazon’s Prime Now service, which offers members one- and two-hour delivery on items. Continue reading Amazon Enters the Gig Economy with “Flex” Delivery Service