Technology: Uber intends to treat drivers as contractors despite California bill - PressFrom - US
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TechnologyUber intends to treat drivers as contractors despite California bill

01:40  12 september  2019
01:40  12 september  2019 Source:   engadget.com

Uber proposes policy that would pay drivers a minimum wage of $21 per hour

Uber proposes policy that would pay drivers a minimum wage of $21 per hour On the heels of a driver-led protest outside Uber's San Francisco headquarters, where drivers showed their support for gig worker protections legislation (via Assembly Bill 5) and demanded a union, Uber is circulating a petition urging people to "protect ridesharing in California." In the petition, Uber advocates for a policy that would offer drivers a minimum of $21 per hour, paid time off, sick leave and compensation if they are injured while driving, as well as a collective voice and "the ability to influence decisions about their work.

pressing them to pass a bill that would force Uber and Lyft to treat their drivers as employees. The bill is intended to codify and extend a 2018 California Supreme Court ruling that put forth a As independent contractors , drivers must cover the costs of vehicle ownership and payroll taxes, and

Uber intends to treat drivers as contractors despite California bill . 29m ago.

California is likely on the cusp of making gig companies treat independent contractors as employees, but Uber doesn't think the potential law will change its business. In an update, legal chief Tony West maintained that Assembly Bill 5 (AB5) would let the ridesharing company continue to classify drivers as contractors if and when it becomes law. Uber wouldn't be exempt from AB5, the company claimed -- rather, it expected to pass the test that determined drivers' status, keeping them as contractors.

Uber intends to treat drivers as contractors despite California bill

For a company to treat its workers as contractors, it has to prove that they're free from the control of the hiring entity, perform work outside the typical range of that entity's business and regularly engage in an "independently established" business similar to the work they perform. It's that second requirement that's the most contentious. West maintained that drivers' work is outside of Uber's usual business, which is to allegedly serve as a "technology platform" for digital marketplaces -- it's to provide the tools drivers use to collect fare, not to provide the transportation itself. The executive pointed to multiple rulings that he claimed would back that interpretation.

The Latest: DoorDash ups ballot measure threat to $90M

The Latest: DoorDash ups ballot measure threat to $90M SACRAMENTO, Calif. (AP) — The Latest on a California fight on gig workers (all times local): 4:30 p.m. The on-demand delivery company DoorDash has joined Uber and Lyft in threatening to put a measure on the California ballot regarding how it treats it workers, upping the total pledged spending to $90 million. The campaign announced Thursday is aimed at forcing a deal with lawmakers and unions on legislation around the rights of workers in so-called gig jobs. It comes as a bill that would make it harder for those companies to classify their workers as independent contractors makes its way through the Legislature.

The company said it would not treat drivers as employees, defying a bill state lawmakers passed this week to extend minimum wage and other protections to independent contractors . The move follows the California Legislature’s formal passage of the bill , called Assembly Bill 5, earlier on Wednesday.

California legislators have passed a bill that would treat workers at so-called gig economy companies such as Uber and Lyft as employees, giving them access to improved wage and benefit protections. The 29-11 vote passed on late Tuesday sends the bill back to the State Assembly for final approval.

West also pointed to a proposal that Uber hoped would allay longstanding complaints about pay and working conditions -- and, of course, avert a legal crackdown. The proposal would set a guaranteed minimum earnings standard for drivers, offer benefits like sick leave and injury coverage and deliver "real sectorial bargaining." Not that the company is taking any chances. West reiterated that Uber was partnering with Lyft on a 2020 ballot initiative that it said would back the "pro-driver policies" if there isn't a compromised reached before then.

In a follow-up on Twitter, West made clear that Uber "will follow the law," whatever the outcome may be.

Uber and Lyft are putting $60 million toward keeping drivers independent contractors

Uber and Lyft are putting $60 million toward keeping drivers independent contractors In light of gig worker protection legislation Assembly Bill 5 making its way through California's legislature, Uber and Lyft are amping up their efforts to do whatever they can to prevent it from happening. And in the event that the bill does pass, which would force Uber and Lyft to make their drivers W-2 employees, both companies are each putting in $30 million to fund a ballot initiative that would enable them to keep their drivers as independent contractors, The New York Times first reported. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.

California just grievously wounded the gig economy. But Assembly Bill 5, the California bill that was approved by the state Senate on September 10th, is only the beginning of a long fight over the relationship between gig companies like Uber and Lyft and the drivers they employ. While it is likely

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The problem, of course, is that California won't necessarily see things Uber's way. Many casual observers will tell you that Uber's business is transportation, not tech -- you hail "an Uber," after all. The bill was clearly crafted with that consideration in mind, denying exemptions mainly to ride hailing companies like Uber and Lyft. Jalopnik also observed that a late amendment to AB5 let city attorneys sue companies for misclassifying workers, making it that much easier to challenge Uber's employment approach and force the courts to apply the contractor test. California appears to be gearing up for a court challenge, and it's not guaranteed that Uber will win.

Uber Newsroom, Uber Comms (Twitter)

Bill giving protections to Uber drivers, others moves ahead.
SACRAMENTO, Calif. (AP) — California lawmakers sent the governor a bill Wednesday that would give new wage and benefit protections to workers at so-called gig economy companies such as Uber and Lyft where people pick up jobs on their own schedule. The 56-15 Assembly vote marked a victory for labor unions and a defeat for tech companies that vehemently oppose the proposal. Democratic Gov. Gavin Newsom has already said he supports it. If signed, the proposal could have national implications as politicians and businesses confront the changing nature of work in the so-called gig economy.

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