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Will California’s Assembly Bill 5 Disrupt the Gig Economy?

Following months of negotiations, lawmakers in California have passed legislation that would require companies to evaluate whether certain current independent contractors should be actually treated as employees thereby availing them to the same rights and benefits for similarly situated individuals. Although the primary targets of the legislation are independent contractors of Uber and Lyft, the new law, known as Assembly Bill 5, extends to other independent contractors, and is seen as problematic by many and could trigger changes and instability well beyond California.

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