Board urges SFMTA to require AB5-compliant employment for scooter and other permits

The Board adopted a resolution urging the San Francisco Municipal Transportation Agency to consider compliance with California Assembly Bill 5 (AB5) when issuing permits to emerging technology companies and other entities that require city permits to operate.

Supervisor Peskin and other supervisors raised concerns earlier in the meeting that some scooter companies and other micro‑mobility providers were using third parties or temp agencies to avoid employment obligations, even where workers appear to be functionally employees. Supervisor Peskin said certain companies were hiring through third-party temp agencies such as Bluecrew to provide workers with W-2s without the benefits that traditionally come with employment.

The resolution, cosponsored by every member of the Board, calls on the SFMTA to use its permitting power to create “good jobs” and to ensure worker protections such as unemployment insurance, workers’ compensation and other employee benefits. Supervisors said the city must evaluate technology impacts not only on infrastructure and public space but also on labor practices.

The resolution passed without objection. Supervisors noted this action complements an anticipated separate office for evaluating emerging technology impacts that one supervisor said she will introduce.