As previously reported, Governor Gavin Newsom signed into law Assembly Bill 5 (AB5) which mandates that companies (including Uber and Lyft) apply the “ABC test” to prove their workers are independent contractors—the classification gig economy companies use to dodge labor protections like overtime pay and health insurance—rather than full employees. Facing uncertain prices in the future from Lyft, as the company contends with how the new law affects its bottom line, Monrovia City Council approved “a proactive response to AB 5 to help reduce the impact of this new legislation” on GoMonrovia, according to the City Manager’s Update.
Beginning Nov. 1, 2019, the city will be implementing the following fare modifactions:
- $1 per shared ride to and from Old Town and the Gold Line Station (a 50 cent increase).
- $3 per shared ride anywhere else in the service area (a 50 cent increase).
- $5 per classic ride anywhere in the service area (no change in price).
According to the interim city manager, “if Lyft is impacted in the future by AB 5, the financial flexibility that we create now will give us more options for assessing future challenges that we will no doubt have to address.”
City staff will now work on developing outreach materials regarding the upcoming price change.