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California Bill paves the way for gig economy workers' rights

CALIFORNIA lawmakers passed a Bill paving the way for gig economy workers to get holiday and sick pay today.

The US state’s Assembly Bill 5 will change how one million California workers are treated in companies such as Uber and Lyft, which are based in California.

Democratic presidential hopefuls Bernie Sanders, Elizabeth Warren and Kamala Harris have supported the Bill. It is also backed by California governor Gavin Newsom, whose signature is required to turn it into law.

Uber and Lyft have both proposed a referendum on the decision to “preserve the freedom and access drivers and riders want and need.”

The companies suggested a guaranteed minimum wage of around $21 (£17) per hour instead of the changes the Bill would bring — but only while drivers are on a trip.

The companies fear that having to treat workers as employees rather than private contractors could increase their costs by up to 30 per cent.

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