Bill That Could Upend Gig Economy Moves Forward in California Senate

A bill that would change the nature of work in California cleared a key hurdle on Friday, when it passed off the Senate Appropriations Committee suspense file and moved to the Senate floor. 

Assembly Bill 5 codifies a 2018 California Supreme Court decision that found workers who are performing core services of a business — like driving for Uber — must be classified as employees rather than contractors. That change would make them eligible not just for higher pay but for benefits, including disability and workers' compensation.

AB 5 now exempts numerous professions from the requirement, including doctors, dentists, hairdressers and barbers. Ride-hailing companies Uber and Lyft are calling for separate legislation to deal with workers in the gig economy.

If that doesn't happen, they are warning that they may pursue a ballot initiative for California's 2020 ballot. The two transportation platform companies, along with the delivery service DoorDash, on Thursday pledged a combined $90 million to fund that potential initiative.

Friday was the deadline for legislation to clear fiscal committees in the Senate and Assembly. Bills that didn't make it through cannot be considered until next year.

Vaccine Exemption Oversight Passes Committee

In the Assembly on Friday, the Appropriations Committee hearing was briefly interrupted by protesters of a bill that would add state oversight to vaccine exemptions.

That legislation, Senate Bill 276, passed the committee, but opponents continued their protest for the rest of the meeting — forcing chair Lorena Gonzalez to read the fate of dozens of other bills over their chants of disapproval.

Currently, schoolchildren are only allowed an exemption from vaccinations if approved by a physician.

SB 276 would bar physicians from charging for these exemptions, and allow the state to review certain exemptions that have been granted. The vaccine legislation has led to contentious hearings throughout its legislative journey, and last week an opponent was arrested for assaulting bill author Richard Pan, D-Sacramento.

Paper Receipt Ban Was a Step Too Far

Body-length receipts have come out on top ― for now. A Legislative committee voted against sending to the Senate floor a bill that would have banned paper receipts unless requested by a customer.

Democratic Sen. Anthony Portantino, chairman of the legislative committee that blocked AB 161 on Friday, said some retailers use the receipts for quality control, and he noted people like to get the coupons that sometimes come with their purchase.

The Legislature will consider hundreds of bills before it adjourns for the year on Sept. 13.