California is moving to codify a sweeping court decision curbing employers’ use of independent contractors, and the new law is unlikely to exempt Uber, Lyft and other app-based technology companies.
The two ride-hailing giants are on the verge of going public with initial stock offerings valued at tens of billions of dollars. Both companies are losing money, and converting their California drivers, currently classified as contractors, to employees would cut into their profits.
“Am I concerned about the stock price of Uber and Lyft?” said Assemblywoman Lorena Gonzalez (D-San Diego), author of Assembly Bill 5, who planned to release the legislation’s new language Wednesday.
“No. It doesn’t keep me up at night.”
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