What the New Gig Economy Bill Could Mean for Your Wallet | theSkimm

Your fav apps might be getting a biz makeover. In September, California passed a bill that could require companies like Uber, Lyft, and DoorDash to reclassify workers as employees instead of independent contractors. If signed into law, the bill could set a new precedent nationwide.

Here’s what that could mean for your wallet.

Prices could go up. Employees have different rights than contractors. Like a guaranteed minimum wage and access to unemployment insurance. Those kinds of benefits don’t come cheap. If the Cali bill becomes law, experts estimate it will raise companies’ costs by up to 30%. If they pass those on to customers, you could pay more for rides, delivery charges, and other fees.

And the service could get worse. Critics argue the bill will make gig jobs less attractive to workers who like the flexibility that comes with making your own schedule as a contractor. Companies could also cut costs by hiring fewer new workers. Not fun when you’re late for your flight and the closest driver’s still 10 minutes away.

Your side hustle could get more lucrative. Having more employment rights (which could include paid parental leave and overtime pay) means more money in your wallet. If you’re in it for financial security more than flexibility, these changes can make you a winner.

theSkimm: Until now, the gig economy has been the Wild Wild West. But a new bill could change the way some Silicon Valley stars — and people who work for them — make money. The rest of us are along for the ride.