[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Inside
Weather
Santa Clarita CA
Mostly cloudy
Mostly cloudy
87°F
 
Calendar
Today in
S.C.V. History
September 15
1970 - SCV voters recall two Hart School Board members who didn't let Canyon students protest the Vietnam War [story]
voting


| Wednesday, Sep 11, 2019
gig economy bill - An Uber driver in a second-generation Ford Fusion in San Francisco. | Photo: Dllu/WMC 4.0.
An Uber driver in a second-generation Ford Fusion in San Francisco. | Photo: Dllu/WMC 4.0.

 

SACRAMENTO — California lawmakers voted Tuesday to shatter the business models of homegrown companies like Uber and Lyft by approving the gig economy bill Assembly Bill 5, legislation that would force the tech industry and many others to turn independent contractors into employees.

The measure by Assemblywoman Lorena Gonzalez, D-San Diego, is one of the most contentious bills of the legislative session and has pitted labor unions and Democrats against the gig economy and the minority Republican faction.

Supporters hope the gig economy bill will set off a tide of similar legislation across the country and extend benefits to millions of contractors, while Uber, Lyft and Doordash are threatening to spend nearly $100 million to overturn the bill via ballot measure once it’s enacted.

“We will raise the standards for millions of workers and ensure they gain access to critical rights and benefits,” said state Sen. Maria Elena Durazo, D-Los Angeles. “We can make California a global leader in protections for gig workers, janitors, construction workers and so many working people who can’t even pay their rent.”

Durazo reminded everyone in the Senate chambers Tuesday night that the landmark 2018 California Supreme Court decision that prompted Assembly Bill 5 was backed by the court’s Republican chief justice. She said it was time for the Legislature to codify the ruling in Dynamex v. Superior Court and bring much-needed clarity to state employment law.

In Dynamex, the state supreme court ruled that to classify workers as contractors, a company must show it does not directly control the worker, that the work falls outside its usual course of business, and that the worker is “customarily engaged in an independently established trade.” The three prongs have been referred to as the “ABC test,” and this the standard that Gonzalez is attempting to codify in law through AB 5.

The ruling set off a flurry of employment lawsuits, emergency corporate boardroom meetings and sent a horde of lobbyists to Gonzalez’s office.

Trade groups have been watching AB 5 closely, and some of their lobbying efforts have paid off.

Gonzalez has agreed to exempt real estate agents, doctors, lawyers, insurance agents and hairstylists from her gig economy bill, and there was separate legislation proposed late Tuesday that would exempt newspaper carriers for one year.

But she has refused to do the same for rideshare or independent truck drivers who have petitioned for carve-outs.

The exemptions have caused critics to accuse Gonzalez and the bill’s supporters of “picking winners and losers.”

“This Legislature should not be in the business of picking favorites, which is exactly what this legislation does,” said Senate Republican Leader Shannon Grove. “A one-size-fits-all employment test should not, and cannot apply to these Californians who depend on income from independent contract work.”

Grove’s Republican caucus tried to put the majority party on the spot by issuing 12 sets of last-ditch hostile amendments for industries that weren’t given exemptions under the final bill. The Republicans bargained for carve-outs for independent truck drivers, designers, lumber workers and certain medical professionals.

But the proposals did little more than delay the inevitable and were all shot down by the Democrats.

After more than two hours of debate, the Senate voted 29-11 to send the proposal to the Assembly to consider the recent amendments. The Assembly approved the original version of the bill by 55-11 vote in May and has until an end of session deadline Friday to decide whether to send the bill to Democratic Gov. Gavin Newsom.

Many Democratic senators acknowledged that the bill isn’t perfect but agreed that AB 5 should serve as a placeholder until further legislation can be proposed in 2020.

“There is more work to be done. But I don’t know, how many years do you want to take before we bring something forward that actually tries to address some of the concerns of the categories of workers that we should address?” asked Senate President Toni Atkins, D-San Diego.

Though it appears likely the bill will be approved by Gov. Newsom, the fight is far from over. Uber and others are threatening to spend $90 million to qualify a 2020 ballot measure and overturn AB 5, setting up a battle between state labor unions and the gig economy.

State Sen. Jeff Stone, R-Temecula, made it obvious that he and other Senate Republicans will be siding with the affected industries.

“We’ve turned this bill into a Christmas tree for labor unions that might as well have an office right here in the state Capitol,” Stone said.

— By Nick Cahill

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

0 Comments

You can be the first one to leave a comment.

Leave a Comment


SCV NewsBreak
LOCAL NEWS HEADLINES
Friday, Sep 13, 2019
Rabid Bat Left at Veterinary Center in Newhall
A bat left on a napkin on the doorstep of All Creatures Veterinary Center in Newhall on Tuesday has tested positive for rabies, the Department of Public Health reported Friday afternoon.
Friday, Sep 13, 2019
SCV Deputies Detain ‘Uncooperative Person’ in Valencia
Santa Clarita Valley Sheriff's Station deputies detained an "uncooperative person" in Valencia Friday afternoon, according to station officials.
Friday, Sep 13, 2019
CHP Preps for Child Passenger Safety Week
To help keep kids safe, the California Highway Patrol is joining its traffic safety partners throughout the state for Child Passenger Safety Week, which begins September 15 and concludes September 21 with National Seat Check Saturday.
Keep Up With Our Facebook

Latest Additions to SCVNews.com
1970 - SCV voters recall two Hart School Board members who didn't let Canyon students protest the Vietnam War [story]
voting
1924 - SCV Deputy Ed Brown killed in shootout with Gus Le Brun [story]
Deputy Ed Brown
A bat left on a napkin on the doorstep of All Creatures Veterinary Center in Newhall on Tuesday has tested positive for rabies, the Department of Public Health reported Friday afternoon.
Rabid Bat Left at Veterinary Center in Newhall
Twenty-six years after Chris Beck left the diamond and etched his name in The Master's University baseball program's record books, his son, Jackson, will take the field for the Mustangs in 2020.
TMU Baseball Signs Jackson Beck, Son of Hall of Famer
Santa Clarita Valley Sheriff's Station deputies detained an "uncooperative person" in Valencia Friday afternoon, according to station officials.
SCV Deputies Detain ‘Uncooperative Person’ in Valencia
College of the Canyons will look to rebound from its week one loss when the Cougars host Grossmont College in Week 2 action Saturday night in a non-conference contest.
Cougars Football Ready to Rebound in Week 2 vs. Grossmont
Despite having some chances, the College of the Canyons men's soccer team suffered a 1-0 loss to Moorpark College as the visiting Raiders were able to spoil the Cougars' 2019 home opener.
Canyons Falls 1-0 to Moorpark in Home Opener
The Greater Los Angeles County Vector Control District has confirmed three additional mosquito samples positive for West Nile virus have been collected in two new areas: Boyle Heights and Whittier.
West Nile Virus Confirmed in Boyle Heights, Whittier
The city of Santa Clarita will host the 25th Annual River Rally Cleanup and Environmental Expo on Saturday, September 21, from 8 a.m. to 11 a.m., starting at the Newhall Community Center located at 22421 Market Street.
Sept. 21: 25th Annual River Rally Cleanup
To help keep kids safe, the California Highway Patrol is joining its traffic safety partners throughout the state for Child Passenger Safety Week, which begins September 15 and concludes September 21 with National Seat Check Saturday.
CHP Preps for Child Passenger Safety Week
Senate Bill 153 has cleared the California Legislature and the industrial hemp bill will now go to Governor Gavin Newsom for final action, the bill's author, Senator Scott Wilk, R-Santa Clarita, announced Friday.
Wilk Hemp Industry Bill Heads to Governor’s Desk
The California Senate passed a robust consumer protection law Friday that limits the amount of interest payday lenders can charge their customers.
California Lawmakers OK Cap on Payday Lending Rates
It was a regular day at work for employees at Jimmy Dean’s in Valencia on Thursday until several customers and employees were witnesses to a suspicious man near the restaurant who was removing his clothes.
Witnesses Share What They Saw Before Thursday’s Shooting
Los Angeles County Sheriff’s Department Homicide Bureau detectives are continuing their investigation of Thursday afternoon's deputy-involved shooting in Santa Clarita, according to an LASD update Thursday night.
Detectives Continue Deputy-Involved Shooting Investigation
With her bills approved by the Legislature, Assemblywoman Christy Smith (D-Santa Clarita) announced the status of her 2019 legislative package Friday.
Smith Bills Update: Seven Passed, Four Already Signed
Moving to keep children off websites like Facebook and Instagram, California lawmakers on Thursday approved a bill barring social media companies from opening an account for anyone under the age of 13 without receiving parental consent.
California Moves to Keep Pre-Teens Off Social Media
Sebastian Barrales Raymundo of Santa Clarita was scheduled to be arraigned Thursday on charges of taking upskirt photos of four women, according to the Los Angeles County District Attorney’s Office.
Santa Clarita Man Charged with Taking Upskirt Photos
The California Legislature on Wednesday approved Senate Bill 206, the "Fair Pay to Play Act," authored by state Sen. Nancy Skinner, D-Berkeley, and co-authored by Sen. Scott Wilk, R-Santa Clarita.
California Legislature OK’s SB 206, ‘Fair Pay to Play Act’
1964 - Fire fighters mop up after blaze in Bouquet Canyon that destroyed world's largest live oak tree [story]
fire
Longtime Agua Dulce resident Doreetha S. Daniels, who became the oldest person ever to graduate from College of the Canyons in June 2015 at age 99, died Sunday. She was 103. Services are pending.
Doreetha Daniels, COC’s Oldest Graduate, Dies at 103
The Santa Clarita Valley Chamber of Commerce announced Thursday the Latino Business Alliance Businesses of the Year Awards to Northeast Valley Health Corporation and Premier America Credit Union.
Chamber to Honor Northeast Valley Health Corporation, Premier America
As part of annual roadway improvements, the city of Santa Clarita will reconfigure two area streets to include a bicycle lane in both directions.
Road Improvements Scheduled for Plum Canyon Road, Smyth Drive
On Wednesday, Santa Clarita Sheriff’s COBRA detectives, assisted by deputies, detained several local high school students after learning about social media threats regarding committing acts of school violence.
Several Students Detained After Alleged Threats of School Violence
A suspect was shot by a local sheriff’s deputy in the Valencia Industrial Center Thursday, prompting a shutdown of the intersection of Rye Canyon Road and Stanford Avenue.
Suspect Shot, Killed in Reported Deputy-Involved Shooting
%d bloggers like this: