California Passes Bill To Ensure Minimum Wages To Gig Workers

(RTTNews) - California State Senate passed the Assembly Bill 5 that ensures minimum wages, workers compensation, holiday and other benefits for the gig workers.

The bill was supported by 29 votes and opposed by 11 members. California Governor Gavin Newsom is expected to sign the bill into law by January 1, 2020. Those who opposed the bills suggest that the new legislation would increase the costs by at least 30 percent.

The gig-worker bill introduced in December 2018 targets Uber and Lyft, the transportation network companies based in California.

Kicking off debate on the bill, Senator Maria Elena Durazo said, "There is nothing innovative about underpaying someone for their labor and basing an entire business model on misclassifying workers."

The tech-supported ride-hailing companies have been trying to establish that the drivers are not their staff, but self-employed. The companies tried for a referendum in California. Earlier Uber has lost an appeal at a tribunal.

It is expected that the new legislation in California would be an inspiration to impliment in other states also.