Biden Administration edges towards federalizing California’s controversial AB5 law
Since the 2020 election, the Biden Administration hasn’t been shy about its pro-union agenda. American labor law has undergone sweeping reform with the PRO Act and now, the White House is taking a keen interest in California’s recent AB5 law - a controversial piece of legislation that has effectively targeted the “gig economy” in the Golden State and caused owner-operators in the trucking industry to shut down the Port of Oakland in protest late last month.
AB5 redefined the Department of Labor’s definition of “independent contractor” - supporters say that the law is meant to give power back to an “exploited” worker and forces companies to hire employees with benefits instead of paying them as contractors. Those who criticize the bill say it instead takes away power from the individual workers who often are seeking more flexibility with their income-earning and that this bill instead hands over unprecedented power to unions.
President Biden has announced America's strictest vehicle exhaust emissions regulations yet, aiming to push the auto industry towards all-electric cars.