SACRAMENTO — California legislators approved a landmark bill on Tuesday that requires companies like Uber and Lyft to treat contract workers as employees, a move that could reshape the gig economy and that adds fuel to a yearslong debate over whether the nature of work has become too insecure.
The bill passed in a 29 to 11 vote in the State Senate and will apply to app-based companies, despite their efforts to negotiate an exemption. California's governor, Gavin Newsom, endorsed the bill this month and is expected to sign it after it goes through the State Assembly, in what is expected to be a formality. Under the measure, which would go into effect Jan. 1, workers must be designated as employees instead of contractors if a company exerts control over how they perform their tasks or if their work is part of a company's regular business.
It's just California, but just like how California's emission standards influence how carmakers build their cars across the whole nation, hopefully this has a similar effect.
I don't use Uber or Lyft regularly so I can't speak for people who regularly use these services in their daily lives, but good for the drivers!
EDIT: That not as great as expected loss for Uber in this thread:
is gonna get not so less once this bill goes into action.