Don’t Say Gig: California AB5 & How It Will Affect Tech Globally
It looks like California Bill AB5 will be going into effect. To refresh your memory, “Known popularly known as the gig worker bill, it required companies that hire independent contractors to reclassify them as employees,” wrote Investopedia.
Upside: gig workers will now be entitled to minimum wages, health insurance, vacation time and other employee benefits. Downside: they no longer choose their schedules, may be barred from taking other employment. And who ultimately gets the bill for the increased costs? Enactment of the bill was temporarily delayed by trucker protests. “California truckers pledge to continue blockade of Oakland port over controversial labor law,” as it made it difficult for them to work as independent contractors, Fox News reported.
It affects tech, too – big time, so pay attention.
During the lockdowns, some countries required that employers continue to pay their employees, even in cases where the company would essentially need to cease functioning as a result of said lockdowns. If they laid the employees off, they were required to pay three months severance. Both of which drove many companies out of business, especially startups – so everyone was out of a job. Nothing like throwing out the baby with the bathwater.
