The California Supreme Court’s Dynamex decision created a new test for what kind of work qualifies someone as an employee in the state. Now the California legislature is trying to put that test into law, making the new rules easier to enforce.
Uber and Lyft rely heavily on independent contractors, and they say they would struggle to stay afloat if required to give employee status to all of their drivers. Both companies are in negotiations with labor unions to carve out an exemption from the Dynamex ruling, so they won't have to make all their drivers employees.