AB5, California’s Gig Economy Legislation, could completely change the landscape for delivery contractors in California, with a possible ripple effect nationwide. The legislation has already passed the State Assembly and is expected to pass into law.
If signed into law in its current state, most gig economy workers would be classified as employees in the state of California. This could have major repercussions across the country, as most of the major delivery companies are based in California.
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That’s where, if I’m at a company right now, where you need to be in a wait-and-see position because we don’t really know what things are going to look like.Richard Meneghello, Partner focused on Gig Economy at Fisher & Phillips