California governor signs gig economy labor bill into law


FILE PHOTO: California’s Governor Gavin Newsom speaks during the California Democratic Convention in San Francisco, California, U.S. June 1, 2019. REUTERS/Stephen Lam

SAN FRANCISCO (Reuters) – California Governor Gavin Newsom on Wednesday signed into law a controversial labor bill, AB 5, which spells out when companies must treat “gig economy” contract workers as employees.

The new law has been opposed by companies that depend heavily on independent workers, including ride hailing and delivery services.

Reporting By Alexandria Sage; editing by Peter Henderson

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