Ridesharing platforms Uber and Lyft this week began rolling out their plan for trying to convince California lawmakers to exempt them from the state’s new restrictive labor law, colloquially known as A.B. 5. The tech companies hope for relief from a legislative act that could spell disaster for their business model.
A.B. 5, just signed by Gov. Gavin Newsom last month, takes effect in little less than two months, on Jan. 1., and its effects aren’t isolated to Uber and Lyft. As reported in recent months by CCJ, the law could have steep implications for trucking, potentially spelling the end of the traditional owner-operator lessee model in the state. The law could bar trucking companies from contracting with owner-operators — a nationwide mainstay within the industry.
