California Senate passes bill to limit the gig economy

Photo by Amelia Holowaty Krales / The Verge

The California Senate has passed legislation that will make it more difficult to classify workers as independent contractors, according to the San Francisco Chronicle. The bill, AB5, will go back to the state Assembly, where lawmakers will have to approve new amendments. If it goes into effect, it will drastically change gig-economy companies including Uber and Lyft.

Should the bill pass the Assembly, Governor Gavin Newsom will almost certainly sign it. On Labor Day, he wrote in The Sacramento Bee that the misclassification of workers — where people are wrongly dentified as independent contractors rather than employees — was contributing to wealth inequality. “I am proud to be supporting Assembly Bill 5, which extends critical labor…

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