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what is going on everybody Jonathan here with gig nation and today we're gonna be looking at a b5 a new piece of legislation that could make lyft drivers uber drivers and doordash couriers full-time employees so let me first provide a quick background on this law it's coming up in California and it's already passed the State Assembly and if it continues to pass Senate it will become a law in California now this is important because California often sets the precedent for laws that kind of move to go nationwide so this could potentially become something that affects a lot other states down the road if it you know gains some ground in California for starters so the law is based on a very simple ABC test that is used to defined employees as either independent contractors or full-time employees so a gig worker would have to pass the following a B and C criteria in order to be categorized as an independent contractor a being that they are free from control and direction of the hiring entity B being that they perform work outside of the usual work of the hiring entity's business and C being that they must usually be engaged in an independent work that is similar to or the same nature of the work that they're doing for the hiring entity so to put this in even more simple terms what it means is that lyft drivers uber drivers the door - couriers GrubHub warriors all of the likes would become full-time employees and that means that those companies would have to offer health insurance Social Security unemployment insurance a minimum wage and the right to form a union this is definitely something that is great for drivers and bad for the companies in the gig economy a lot of rideshare drivers mainly a lot of uber drivers are really pressing for this law and protesting in favor of it but uber on the other hand is actually organizing a lot of protesters to try and protest against the law and they've been doing a lot to incentivize their drivers to try and show up to these protests by offering free food and raffle tickets and believe it or not there are actually a decent amount of people that showed up protesting in favor of uber against a b5 it wasn't huge numbers but probably like a couple people that showed up to this protest whether or not this was because of the incentives that uber offered or maybe they actually do believe in the uber platform you know it is possible that there are drivers out there that enjoy using this from time to time to make a little bit of extra cash here and there and don't want to do it as a full-time thing and in that sense it really is potentially useful to some people who aren't looking for that full-time income but you know the thing is is that the people who are just doing this as a side hustle for a little bit of side cash usually aren't the passionate ones that really are gonna show up and force and protest because they don't tend to need the money as much as people were looking for full-time income here the movement that has been led by drivers on the other hand in favor of a b5 is growing much more quickly and much faster and that's because rideshare companies the gig economy food delivery companies have actually replaced a lot of full-time positions a lot of jobs that in the past were full-time with independent contractor status that at one point was favorable for drivers I mean there were decent wages in the beginning you could make a good amount of money driving for uber delivering for door - but consistent wage cuts have kind of bumped that down low enough that it doesn't actually make sense for a lot of people and they can no longer make a living for themselves with these jobs so here are my thoughts this could actually upend the gig economy a lot of these companies like lyft uber adore - are now public companies and they're struggling to make a profit and they've been cutting wages to try and become more profitable but still haven't gotten there yet so a pay structure that requires full-time employees is going to make them vastly more unprofitable now what we could see happening is companies like this pushing even faster applying more pressure towards automation towards replacing drivers with automated vehicles and finding other methods to kind of fulfill deliveries and fulfill rides at a cheaper price now we know that companies have been pushing to do this for a while but it's really tough to get past legislation and to push this sort of technology you know nationwide when a lot of people are worried about the safety but you know new legislation such as a b5 could actually cause these companies to kind of push even faster towards that automate now hopefully that's not what happens hopefully if we do see a beef I've gained ground in California and moved to other states throughout the nation we actually see more sustainable business models taking place where companies are providing a good service but also providing fair livable wages potentially full-time wages to their employees let me know what you think about a b5 if you think it's going to gain ground going to pass and whether or not it's a good thing leave a comment down below because I'd love to hear your opinion