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  • Some Sectors Warn that AB5 Could Hurt Workers, Raise Prices

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    September 05, 2019
    San Francisco Chrolicle: 
     

    As California moves forward with legislation that could turn many independent contractors into employees, some industries are vociferously protesting that the changes could hurt their workers and raise costs for consumers.

    Assembly Bill 5, sponsored by Assemblywoman Lorena Gonzalez, D-San Diego, saw its chances of becoming law rise this week when Gov. Gavin Newsom threw his support behind it. The bill has passed the Assembly and two Senate committees and this month will head to the Senate floor, where a strong Democratic majority is likely to pass it. Newsom, Gonzalez, labor leaders and other AB5 proponents say it would provide basic safety net protections like unemployment insurance and workers’ compensation for hundreds of thousands of misclassified workers.

    But some opponents say that many people who would become employees under the bill want to remain independent contractors, and warn of a ripple effect hitting their customers.  Read More