Uber, Lyft, and DoorDash Attempt a U-Turn on AB5
Labor & Employment Law Alert-by Hanson Bridgett
The fate of Assembly Bill 5 (AB 5) may be headed to the voters. Uber, Lyft, and DoorDash have unveiled the Protect App-Based Drivers and Services Act, a $90 million ballot initiative targeting AB 5. AB 5, signed by Governor Newsom on September 18, 2019, is broad legislation that has significant impacts for large numbers of California employers. AB 5 broadly adopts a new test for determining whether a worker is an independent contractor or an employee, with far-reaching implications. Backers of the initiative hope to get the proposal on the November 2020 ballot. In the meantime, any employer who has services provided by independent contractors or any non-employee workers will need to examine its relationships and, in some cases, its business model to determine the application of AB 5.
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