California Gov. Gavin Newsom Signs Contract Workers Bill

Assembly Bill 5, signed into law by Governor Newsom, redefines employer-worker relationships in California, requiring companies to treat contract workers as employees if they control their work or if the work is part of the company's regular business. This change affects ridesharing companies like Uber and Lyft, which oppose the bill, arguing it removes driver flexibility. The law, effective January 1st, aims to set a global standard for worker protections. Uber and Lyft are considering a ballot measure to overturn the law.

What is the primary change introduced by Assembly Bill 5?

• It reduces the minimum wage for contract workers.

• It eliminates overtime pay for employees.

• It allows companies to hire more contractors.

• It requires contract workers to be treated as employees.

Which of the following rights will contract workers gain under the new law?

• Stock options

• Free meals

• Company car

• Overtime pay

When is the new law set to take effect?

• January 1st

• March 15th

• July 4th

• December 31st

What is the main concern of Uber and Lyft regarding the new legislation?

• Loss of driver flexibility

• Higher insurance premiums

• Increased fuel costs

• Reduced customer base

What action are Uber and Lyft considering to challenge the new law?

• Filing a lawsuit

• Launching a marketing campaign

• Proposing a statewide ballot measure

• Negotiating with other states