Money: California passes gig economy bill in blow to Lyft and Uber - PressFrom - United Kingdom
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MoneyCalifornia passes gig economy bill in blow to Lyft and Uber

10:50  11 september  2019
10:50  11 september  2019 Source:   cityam.com

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SACRAMENTO — A pack of Teamsters fanned out through California ’s Capitol building last week, marching into legislators’ offices and pressing them to pass a bill that would force Uber and Lyft to treat their drivers as employees.

SACRAMENTO — California legislators approved a landmark bill on Tuesday that requires companies like Uber and Lyft to treat contract workers as employees, a move that could reshape the gig economy and that adds fuel to a yearslong debate over whether the nature of work has become too insecure.

California passes gig economy bill in blow to Lyft and Uber © Getty

California has passed a controversial bill that means gig economy workers are set to be classified as full-time employees.

The move, expected to be signed and passed into law by California governor Gavin Newsom, would pile pressure on companies like Uber and Lyft, which rely on self-employed workers.

It would make it harder for such firms to argue that workers are contractors and not full-time employees, who would be entitled to certain wages with paid holidays and health benefits.

California passes gig economy bill in blow to Lyft and Uber © Reuters

Uber has fought against a similar law in the UK and both ride-hailing giants lobbied extensively against California’s AB5 bill.

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Court adopts a broader definition of who qualifies as an employee, at a time when workers in the gig economy are demanding more rights.

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They proposed paying drivers a $21 minimum wage as they sought to avoid the rising costs associated with the benefits of full-time employment.

Shares in both companies hit record lows since their recent floats at the end of last week as traders bet on the bill being passed into law.

Governor Newsom has already lent the bill his endorsement so passing it is expected to be a formality.

Uber has moved to cut 435 staff today as it seeks to slash costs.

California passes gig economy bill in blow to Lyft and Uber © Getty

AB5 passed with ease through California’s House of Representatives with a vote of 53-11 in favour, before passing today’s Senate session 29-11.

Some Republican lawmakers criticised the bill for picking “winners and losers”, Gizmodo reported, but Senator Maria Durazo retorted: “One job should be enough.”

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California AB 5: Lyft and Uber drivers from across state rally in Sacramento for gig economy bill . Lyft , which launched a campaign that sent emails to 2.5 million California riders and drivers this week asking them to voice their opposition to the bill , highlighted an alternative plan the companies are

That California has come to the brink of fundamentally threatening such marquee companies is the culmination of miscalculations by Uber and Lyft , a Two weeks after the bill passed the state’s lower house in late May, Uber ’s chief executive and Lyft ’s co-founders wrote a commentary for The San

Related: Big business mistakes that cost companies money and reputation (Lovemoney)

Drivers for Deliveroo in the UK lost a High Court battle to gain union recognition in December, in a blow to gig economy workers.

Uber meanwhile, lost an appeal in Britain that same month against a ruling that drivers should be classified as workers and be paid to take holidays as well as be entitled to minimum wage.

Uber said at the time it would challenge the ruling in the Supreme Court.

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Uber Eats doesn’t plan on eating its competition — for now.
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