The US state of California, that possesses the country’s largest economy, has also been the trendsetter when it comes to laws and regulations surrounding various industries such as housing, energy, automotive and technology. There is a new law titled the Assembly Bill 5 or AB5, which threatens to have a major impact on the ongoing trend of the gig economy. This bill was passed at both the Senate as well as the state House some time back. This law takes effect from the first day of 2020. It states that all independent contractual workers, need to be registered as employees and thus be part of all benefits and insurance that regular employees avail. This will have a massive impact on talent recruitment, as the law affects trucking, publishing, cleaning and rideshare companies. While the law is popularly known as the ‘Uber Law’, Uber considers itself out of its requirements. The ongoing gig economy, with its army of more than a million freelance employees in California could be severely impacted, either way.


Uploaded Date:03 October 2019

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