California’s new gig worker law tried to help people — particularly Uber and Lyft drivers — who received few protections and no benefits because they were classified as independent contractors instead of employees.

Now, state legislators are trying to improve A.B. 5 — which took effect Jan. 1 — to make allowances for other types of workers who rely on their independent status to make a living. 

In June, the Assembly voted unanimously to advance bills that would exempt from A.B. 5 creative professionals such as freelance journalists, musicians and photographers, as well as a handful of others. The state Senate must act on the bills by Aug. 31; passage would send them to the desk of Gov. Gavin Newsom.

Independent writers, freelance journalists, editors, photographers and others in California usually contract with several employers and require independent status to make a living. So state legislators are attempting to walk the fine line between protecting certain workers while not hindering others. Changes also would affect certain roles related to youth sports coaching, performing arts teaching, appraisers, translators, certain insurance industry roles, competition judges, international exchange visitor program workers, and those whose work relates to the sale of sound recordings.

As related to the specified professions, key changes would include:

• Deleting a provision that would require employee status when submissions to a single employer surpass 35.
• Exempting services with terms contractually defined in advance, so long as the contractor is not replacing an employee who performed the same work at the same volume, the person isn’t typically working at the hiring entity’s location, and the person isn’t restricted from working for multiple employers.

(See more details in this legislative summary of A.B. 1850.)

For non-exempted professions, the law would continue to consider a worker as an employee (rather than an independent contractor) unless the situation meets the following three requirements:

1. The person is autonomous from the hiring entity in performing the work.
2. The work performed is outside the usual business of the hiring entity.
3. The person typically works in an independently established trade, occupation or business similar to the work being performed.

Separately, rideshare companies are challenging the new law in court and at the ballot box. Lyft, Uber and DoorDash reportedly raised more than $100 million to fight the law. Their group recently gathered enough signatures to put an initiative on the Nov. 3 ballot. If passed, the measure would allow app-based transportation and delivery drivers to remain as independent contractors. However, the measure would require that the companies who use those drivers provide alternative benefits such as minimum compensation and healthcare subsidies based on engaged driving time, vehicle insurance, safety training, and sexual harassment policies.

If you’re confused about this fluid situation and need legal advice, Keller Grover can help — whether you’re a rideshare driver in need of protections or an independent contractor trying to make a living. Begin with one of Keller Grover’s free consultations. In more than 25 years litigating fraud and employment cases, the lawyers at Keller Grover have recovered hundreds of millions of dollars for clients and class members.