California law on treating rideshare drivers as employees may hurt 'gig economy'

The Japan Times 

WASHINGTON – Labor activists Wednesday were celebrating California's move to have drivers treated as employees by rideshare firms even as it fueled concerns it will hurt digital platforms depending on the "gig economy." A landmark bill was approved 29-11 late Tuesday in the state senate, with the assembly -- which has already approved the measure -- expected to send it to California Gov. Gavin Newsom. The legislation, which is being closely watched in other states, responds to critics who argue that companies like Uber and Lyft shortchange drivers by denying them employee benefits. The law, if enacted, challenges the business model of the rideshare platforms and others that depend on workers taking on "gigs" as independent contractors. "This is a huge win for workers across the nation!"