California has passed the much-debated AB5 – without an exemption for Uber and other gig economy companies. The crux of the legislation lies in the redefinition of “independent contractor” under California law. According to Vox, the new standard for independent contractor hiring is the “abc” test. The hire must be: a) free from the company’s control, b) doing work that isn’t central to the company’s business, and c) have an independent business in that industry. Uber, Lyft, and DoorDash said that they will each contribute $30 million for a ballot initiative to overturn the legislation.
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