California Senate Bill SB1039

California 2019-2020 Regular Session

• Introduced: 2/14/20
• Refer: 2/27/20

Caption

Independent workers.

Impact

If enacted, SB 1039 would significantly alter the landscape of worker rights within California. The bill acknowledges the reality that many workers in the gig economy seek flexibility and may not fit neatly into traditional employment classifications. By providing a set of benefits to independent workers, the bill aims to ensure these individuals have access to the same protections that safeguard other labor forces. This shift may prevent further erosion of such rights and promote fairness for workers who opt for independent contracts, where previously enacted measures, like Assembly Bill 5, resulted in unintended consequences, such as reduced opportunities for flexible work arrangements.

Summary

Senate Bill No. 1039, titled the Independent Worker Rights Act of 2020, aims to modernize the classification of workers in California by establishing a third category for independent workers. This bill arises in response to the challenges posed by the gig economy and seeks to address the limitations of a binary employee-independent contractor classification system. The core intent is to enhance labor protections for those who choose independent work, ensuring they receive certain rights previously reserved for traditional employees. This would include rights to minimum wage, occupational accident coverage, and protections against workplace discrimination, thereby acknowledging the evolving nature of work in a technology-driven economy.

Contention

The discussion surrounding SB 1039 is likely to touch on several contentious points. Proponents argue that the bill would correct the overreach of previous legislation that misclassified independent workers, leading to loss of jobs and the diminished operational capacity of businesses due to the strict application of the ABC test established by the California Supreme Court. Opponents might raise concerns regarding the adequacy of protection provided under this new classification and whether it truly offers a sufficient safety net. Furthermore, there may be debates about the potential financial impact on businesses that would need to adapt to new standards of compliance.