California Gov. Gavin Newsom Signs Contract Workers Bill

California Gov. Gavin Newsom Signs Contract Workers Bill

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Assembly Bill 5, signed into law by Governor Newsom, redefines employer-worker relationships in California, requiring companies to treat contract workers as employees if they control their work or if the work is part of the company's regular business. This change affects ridesharing companies like Uber and Lyft, which oppose the bill, arguing it removes driver flexibility. The law, effective January 1st, aims to set a global standard for worker protections. Uber and Lyft are considering a ballot measure to overturn the law.

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