Uber and COVID-19
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Just a few months ago, though, the California legislature passed AB5, a law that says companies cannot classify workers as “independent contractors” without very good justifications. At the center of the law is a straightforward test: the status of “independent contractor” can only be applied to workers engaged in work that is distinct from the company’s core business. Since Uber and Lyft provide transportation services as their core business, the law reasons that the drivers who deliver this service must be treated as employees. But Uber, Lyft and other gig companies are defying the law, endangering drivers and the public in the process.
But as the state comes under scrutiny for a series of failed or incomplete contracts and its vendor vetting process, some public officials say the law should change.