Reason Why the Bill Was Introduced
The intent of introducing the bill was to provide equal employment rights for independent contractors. For example, when companies like Uber hire their drivers, they do not take responsibility for the driver’s liabilities. Here, the driver is an independent contractor. Many people prefer to work as independent contractors, but they do not get benefits as normal employees do. Assembly Bill 5 aims to make it mandatory for companies to recognize independent contractors as employees, and provide them benefits. This means that they will work fewer hours, earn more money and have a better quality of life.Mixed Reactions
Though the bill is aimed to have a positive impact on independent contractors, it has received mixed reactions. Some gig workers are happy about the bill, especially if they are Uber or Lyft drivers, but some gig workers who work independently without the help of any other company do not like it. This is because they will not get any more gigs and will eventually go out of business. If they have to start working as an employee at a company, they will earn much less than they do now. Since freelancers also qualify as independent contractors, the bill makes it harder for them to find new opportunities. If they work remotely, companies in California can hire a freelancer from any part of the world to do the job.
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