SACRAMENTO, Calif. — California’s controversial Assembly Bill 5 took effect on January 1. It takes aim at “misclassified” workers but is already facing several legal battles.
Uber, the trucking industry, and groups representing journalists have already filed lawsuits against the state over the new law.
The law could affect many industries including the so-called app-based gig economy like ridesharing, food delivery and more. It could require businesses across the state to reclassify as many as 2,000,000 independent contractors as employees.
Although, workers in some industries have been exempted from the law including some health care professionals, commissioned salespeople, and barbers to name a few.
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Advocates say the new law offers guaranteed wage protections like an hourly minimum wage and workers compensation insurance. Opponents say the law is expensive for businesses and unfair, since it offers exemptions to some industries and not others. There are workers who have spoken out in favor and against the law.
“This is not going to be settled overnight,” said Dan Walters, a journalist with CalMatters who has been following the issue for nearly two years. “It’s probably going to be a lot of court battles, a lot of angst, a lot of disruption before this thing is resolved.”
Walters describes the issue what is expected to be a “titanic” battle that could take months or even years.
Uber, Lyft, and Doordash have poured tens of millions of dollars toward a campaign supporting a ballot initiative that could offer exemptions for their industries.
While most Californians won’t be directly affected, customers who use ridesharing, dog walking, or food delivery apps may be, Walters said. Companies are likely to pass on costs to the consumer and there could be fewer people working in those industries.
The National Press Photographers Association (NPPA) along with the American Society of Journalists and Authors filed suit against the state of California on December 17, 2019. The organizations are claiming that the new law violates the free speech and equal protection clause of the U.S. constitution.
“Unfortunately, journalists, photographers and writers are caught between the rock of dwindling to non-existent employment opportunities and the hard place of AB 5,” said Mickey Osterreicher with the NPPA.
Freelance writers and still photographers who submit more than 35 articles or photos to an organization would be required to be treated as an employee, Osterreicher said. He says the stringent rules could force people out of work and argues that it does not give workers a choice.
(Editors note: Some photojournalists at ABC10 are members of the National Press Photographers Association.)
WATCH MORE: Two new money-related laws go into effect in California including one that undocumented students could apply for a loan for their graduate degree.
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