California Senate Approves Bill Regulating ‘Gig Economy’

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Members of the Independent Drivers Guild take part on the solidarity rally in support of drivers at the Uber and Lyft New York City Headquaters on May 8, 2019. (Credit: JOHANNES EISELE/AFP/Getty Images)

Members of the Independent Drivers Guild take part on the solidarity rally in support of drivers at the Uber and Lyft New York City Headquaters on May 8, 2019. (Credit: JOHANNES EISELE/AFP/Getty Images)

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The California Senate has passed a bill that would give new wage and benefit protections to workers at so-called gig economy companies like Uber and Lyft.

The 29-11 vote late Tuesday sends the bill back to the state Assembly for final approval over strident Republican opposition. Democratic Gov. Gavin Newsom has said he supports it.

The proposal has drawn staunch opposition from on-demand delivery and ridesharing companies while winning support from many of the Democratic presidential contenders.

It puts into law a California Supreme Court decision making it harder for companies to classify workers as independent contractors. The bill would make those companies classify their workers as employees instead.

While its impact on gig economy companies has drawn most of the attention, it would affect a wide array of industries.

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