9. California Senate aims to limit the gig economy
The California Senate has passed legislation that is now going to make it more difficult for workers to be categorized as independent contractors. Gig-economy businesses and companies — such as Uber and Lyft — will be drastically altered if the bill comes to pass. Employees from Postmates, Instacart, DoorDash, Lyft, Uber, and others would be considered official employees as of Jan. 1, 2020. Other gig-workers — such as translators and taxi drivers — would also be impacted. Uber, Lyft, and similar companies taking part in the gig-economy are working to create an original category for workers in an effort to combat the bill. (Source: The Verge)
Why this is important for your firm and clients: Many small businesses outsource their tech work to contract workers. In California the rule is that independent contractors are specifically “workers whose tasks aren’t performed under the company’s control, are performing work outside the company’s main business, and have their own independent enterprise in their trade are contractors.” Will this spread nationwide?