The state of California entered a new era after the clock struck midnight at the close of 2019.
![The Golden State vanguard: Tech companies respond to California’s clampdown](https://20627419.fs1.hubspotusercontent-na1.net/hub/20627419/hubfs/The%20Hustle/Assets/Images/1214065445-Spunky-Brief_2020-01-21T235400.291Z-1.webp?width=595&height=400&name=1214065445-Spunky-Brief_2020-01-21T235400.291Z-1.webp)
Two major state laws took effect, and they could reshape Silicon Valley’s relationship with the lifeblood of the digital economy: real, live human beings.
Why the 2 measures matter
Three weeks into 2020, we’re starting to get a clearer picture of how companies will get by in the Brave New World of California. Here’s a rundown.
Up first: Assembly Bill 5
What it does: Companies that hire independent contractors are now required to classify most of them as employees, giving them access to stronger benefits.
Why it matters: Tech companies rely on these gig workers in a huge way. They form the backbone of entire business models — looking at you, Uber and DoorDash.
What’s happening now: The law is forcing the companies to rethink how they operate.
- Uber is testing a new feature that allows some California drivers to set their own fares, The Wall Street Journal reported on Tuesday
- Uber is also teaming up with other companies to raise money for a ballot initiative that would exempt them from the new rules
Next: The California Consumer Privacy Act
What it does: It gives consumers new rights around how their personal information is stored and shared.
Why it matters: Users can request the information that companies have collected about them — and the picture isn’t always pretty.
What’s happening now:
- The Washington Post spot-checked Big Tech’s efforts to comply. The verdict? Spotty, at best
- As for Uber: It’ll reveal a customer’s star rating, but not some customer service calls. The Post said the company “maintains other data undisclosed in CCPA requests,” too