Gig-Economy & Social Media Platforms
Technology companies will likely face a more challenging regulatory environment under a Democratic Administration. Even as relations between the industry and the White House have been tense for years, President-Elect Biden will bring a renewed focus to strengthening labor rights in the gig economy.
The Biden platform has opened for a national equivalent of the California Assembly Bill 5, which establishes an “ABC” test for determining whether a gig worker is to be considered a full-time employee and not a contractor—essentially reclassifying drivers for ride-sharing companies or other workers in similar contractor-reliant companies as employees. For gig-workers, this would affirm the right to receiving health care benefits and paid leave. However, it is noteworthy that key provisions in AB 5 were overturned in a successful California ballot initiative that passed in November. The success of that ballot initiative could stunt momentum on similar efforts in other states and at the federal level.