California clamped down on the gig economy this week, with the state Assembly’s passage of a bill that could force ride-hailing, delivery and other service companies to reclassify workers or change their business model.
AB5 would codify the California Supreme Court’s adoption of the worker-friendly ABC test to determine employee classification in Dynamex Operations West v. Superior Court—but it’s not yet finalized, and labor lawyers note exemptions could still be added for some gig economy jobs. The bill’s next headed to the state Senate.