Will the Passing of AB5 in California Lend Strength to the Cooperative Platform Economy Act?

Summary

California has just passed a bill that could transform the exploitative, tech-driven, gig economy and open the door for a new, potentially more cooperative, future for gig and contract workers across the state. The landmark legislation is Assembly Bill 5, or AB5 as it is now commonly known, which was initially introduced by Lorena González (D-San Diego) as a response to a decision made by the California Supreme Court regarding how companies classify workers. AB5 will mandate that companies no longer use contracts as a way to avoid workers benefits such as sick pay, minimum wage, or health care and social security contributions.

“AB5 has raised, in public consciousness, that idea that flexibility does not have to come at the cost of employment. They are not mutually exclusive,” says Ra Criscitiello, deputy director of research at the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), a 150,000-member-strong labor union.