A new law that went into effect in California on Wednesday is supposed to make it harder for companies to hire workers as contractors — but gig companies like Uber, Lyft and the food delivery platform Postmates are refusing to reclassify their fleet of drivers as employees.
Supporters of Assembly Bill 5 say companies have been exploiting contract workers for years because they aren’t considered employees who get benefits like health coverage and workers’ compensation.
The law touches many industries, from trucking to tech to certain medical professions. AB5 does include carveouts for professions such as dentists and attorneys.
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