9.16.19 - California’s Gig-Economy Rules Won’t Help Anyone
'The California Legislature has approved a bill to classify gig-economy workers as employees. The measure is a triumph for organized labor — but a costly blow to technology companies, consumers and, potentially, workers themselves. Before he signs the bill, California Governor Gavin Newsom should insist that all sides work to improve it.'
'A legislative compromise — one that provides independent workers with basic protections and wage guarantees, but not the full suite of benefits that flow to employees — remains the best solution. In negotiations with state officials and union leaders, tech companies offered a guaranteed $21 hourly wage for drivers, as well as access to company-funded benefits and “sectoral” bargaining rights. In return, the industry lobbied against provisions in the bill that allow for prosecution of companies that fail to reclassify their workers. Although Newsom initially expressed support for such a deal, he backed away from it after the unions refused to go along.'
'The governor should reconsider, and bring the parties back to the table before the legislation becomes law in January. Clarifying the status of gig-economy workers while providing them with an additional measure of security is in the interests of both companies and workers.'