Ride-sharing companies Uber and Lyft could be on the brink of shutting down in California after a judge ordered them to reclassify independent contractors as employees.
Why? All companies employing freelancers or individuals partaking in freelancing must comply with Assembly Bill 5 (AB5), the new anti-gig work law.
It seems benign on the surface. Once readers peruse the bill’s language, they discover its nefarious goals.
It erroneously claims the “misclassification of workers as independent contractors has been a significant factor in the erosion of the middle class and the rise in income inequality.” And its federal companion bill, the PRO Act—supported by Democrats like Joe Biden—is equally damning.
Gig workers, who primarily identify as independent contractors, aren’t worse off due to their current status. Seeking to reclassify them as employees will carry serious legal ramifications and jeopardize many livelihoods.