In Case You Missed It … Procurement and Supply Market Roundup

We can't comment on every press release that hits our desks, but here are a few market news stories this week that we thought we should bring to your attention, and some of our own you may have missed - we may have more from our analysts in the coming days  ... SolutionMap Q3 Launched Our main news this week was the Spend Matters Q3 SolutionMap launch - this is the procurement technology benchmark rankings of 56 procurement software companies across 12 solution categories. SolutionMap evaluates vendors based on equal parts objective technology capability ranking (done by our analysts) and customer feedback scores with set weightings. Read this excellent article too on what the SolutionMap personas mean and how to use them. And of course our other big news this week was ... drum roll: Peter Smith's Book Launch - A Procurement Compendium Our founder Jason Busch (over from Chicago [...]

CA Assembly Bill 5 passes: Is the gig economy doomed? (Part 2) [PRO]

workers paprikaworks/Adobe Stock

Last week, in Part 1 of this Spend Matters PRO series, we covered the controversial California Assembly Bill 5 (AB-5) that changes the definition of who is an employee and who is a contractor — sending shockwaves through the ecosystem of businesses and workers that constitute the so-called gig economy (that part of the labor market where businesses, including online gig platforms like Uber, engage workers as non-employees). Though California Gov. Gavin Newsom signed the bill into law this week and it is slated to take effect January 2020, the future is still uncertain, and the controversy still rages.

Gig-platform companies providing ride, delivery and other services have been in the cross hairs of the bill, and they have already spent over $15 million attempting to challenge, influence and obtain an exemption from the law. Uber has suggested it will defy AB-5. And Uber, Lyft and DoorDash may fund a statewide referendum to cost upwards of $90 million. Court challenges will also come from many businesses and other organizations that do not support the law.

The fundamental issue at stake is how workers get classified by the state as either an employee (EE) or independent contractor (IC). AB-5 defines just that in very specific terms; and some people (mainly workers) are happy about that, and others (mainly businesses) are not (see Part 1 for more details on the law and its exemptions). Indeed, the stakes can be very high for businesses that rely on ICs (or who they thought were IC). But that’s just one side of the story — new laws and regulations that may cut into profits or even destroy some gig economy business models. There are other perspectives as well, such as workers and government, to name two.

In Part 2 of the series, we examine the competing interests and perspectives around AB-5. In Part 3, we will provide our own thoughts on the bill as well as point to potential implications for contingent workforce managers, HR and other executives.