AB5 is a bill that could one day give full employee status to gig workers from companies like Uber, Lyft, and DoorDash. Today, California’s governor signed it into law.
While a major victory for the organized labor movement in California and in the U.S. broadly, the passing of AB5 is by no means a guarantee drivers in the state will become employees. Drivers or individual cities will need to challenge these businesses in court to apply the aforementioned ABC test, and Uber has already adopted an offensive posture in that regard, claiming that drivers are not core to the company’s business model—one of the stipulations of the ABC test.
Drivers in a ride-sharing company are not core to Uber’s business model. Wow.