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TechnologyUber, Lyft business could be upended by California gig-worker bill

01:45  12 september  2019
01:45  12 september  2019 Source:   cnet.com

Uber and Lyft drivers are not letting up on the fight for AB-5 and a union

Uber and Lyft drivers are not letting up on the fight for AB-5 and a union A number Uber and Lyft drivers are protesting outside of Uber's San Francisco headquarters to demand the passage of Assembly Bill 5 and the right to unionize. This is part of a three-day caravan across California organized by Gig Workers Rising and Mobile Workers Alliance. "The journey is inspired by the United Farm Workers 1966 pilgrimage from Delano to Sacramento, led by Cesar Chavez," MWA wrote on its blog. "Like gig workers in California, farm workers were thought to be impossible to organize and their exploitation was taken as a given by the public at large. The UFW proved the doubters wrong and we will too.

California 's Senate passed a landmark bill on Tuesday night that could make Uber , Lyft , DoorDash, Postmates and other gig economy companies reclassify their workers as employees. The prospective bill , AB 5, has the potential to upend gig economy companies, which have businesses

Uber , Lyft business could be upended by California gig - worker bill . Both Uber and Lyft have also said they're ready to take the issue to California voters by sponsoring a ballot initiative in November 2020 that would exempt them from the law.

Big changes are afoot for the gig economy. California's Senate passed a landmark bill on Tuesday night that could make Uber , Lyft , DoorDash, Postmates and other gig economy companies reclassify their workers as employees. Gov. Gavin Newsom has said he'll sign it into law.

Uber, Lyft business could be upended by California gig-worker bill© Provided by CBS Interactive Inc. Ride-hail drivers protest in favor of California's AB 5. James Martin/CNET

The prospective law, AB 5, could upend these gig economy companies, which have businesses hinged on bringing aboard hundreds of thousands of independent contractors whose labor is far cheaper than that of employees. The setup benefits the companies by shifting many costs to the workers. For example, Uber and Lyft drivers supply and maintain their own cars and also pay for their own health care. The drivers also aren't given benefits, such as sick days or overtime pay.

Uber, Lyft threaten $60 million California ballot measure

Uber, Lyft threaten $60 million California ballot measure SACRAMENTO, Calif. (AP) — Uber and Lyft threatened Thursday to spend at least $60 million on a California ballot measure if they can't reach a deal with unions and lawmakers on legislation that would change the rights of gig workers. "We remain focused on reaching a deal, and are confident about bringing this issue to the voters if necessary," Adrian Durbin, senior director of communications at Lyft, said in a statement. The companies' team-up comes as California lawmakers debate a bill that would make it harder to classify workers as independent contractors instead of employees. As employees, workers are entitled to more wage protections and benefits.

Under the bill , workers are likely to be employees if the company directs their tasks and the work is part of the company’s main business . Even drivers for Uber and Lyft have been split on the bill . Small vineyard owners are concerned that they could be forced to directly employ the independent

How Uber , Lyft and Others Could Be Upended By California ’s New Law | WSJ Uber makes major changes in California to comply with new gig worker law - Продолжительность: 2:01 ABC10 1 621 просмотр. Uber investor weighs in on the California gig economy law - Продолжительность: 3

Uber, Lyft business could be upended by California gig-worker bill© CNET

Uber and Lyft have both said their businesses could be broken if they're required to reclassify their drivers as employees. The move would bring a new set of costs to the companies -- both of which are struggling to become profitable. Uber had two rounds of layoffs in the past six weeks to control its costs.

When Uber filed to become a publicly traded company, it specifically identified the risk in a filing with the Securities and Exchange Commission. "Our business would be adversely affected if drivers were classified as employees instead of independent contractors," it wrote.

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 lawmakers have passed a bill requiring Uber , Lyft , DoorDash, and other " gig economy" businesses to treat workers as employees instead The upshot could be fewer jobs for ride-hailing workers . Consumers could end up paying too. "Whatever the increase in terms of operating cost

Uber and Lyft took a major hit in California last month when lawmakers passed Assembly Bill 5, which could dramatically reshape the state's gig -economy. Protect worker flexibility and independence. The ballot measure would protect the right of app-based rideshare and delivery drivers to work as

Tony West, Uber's chief legal officer, didn't appear too worried during a press call with reporters on Wednesday.

"This business is incredibly adaptable and has withstood enourmous enourmous challenges to its business model and has always come through those stronger and more responsive," he said. "I do feel confident that we are going to be able to manage through this just as we have been able to manage through in the past."

Drivers will not be automatically reclassified as employees, even after January of next year.
Tony West, Uber's chief legal officer

Once signed by Newsom, AB 5 is set to go into effect on Jan. 1, 2020. Under the bill, all companies using independent contractors in the state will be put to a three-part test that looks at how much control the company has over its workers. This includes things like whether or not the company has workers wear uniforms, use the company's equipment and follow business mandates.

Uber and Lyft prepare $60 million fight against worker classification bill

Uber and Lyft prepare $60 million fight against worker classification bill The fight over whether rideshare drivers should be classified as employees and therefore be eligible for benefits continues. The latest battleground is California, where a worker classification bill is currently being debated by lawmakers. Uber and Lyft say that classifying their drivers as employees and not independent contractors would endanger their businesses, and have threatened to spend a combined $60 million on a ballot measure to exempt them from the bill.

California lawmakers passed legislation Tuesday evening that would reclassifymany gig economy workers from independent contractors to employees,guaranteeing them labor protections and benefits ― and potentially upendingthe business models of tech companies like Uber and Lyft .

Legislators approved a bill that would reclassify Uber and Lyft drivers as employees, but the debate over gig worker rights is only beginning.

West believes Uber will pass this test, however, and therefore its workers won't be required to become employees.

"Under that three-part test, arguably the highest bar is that a company must prove that contractors are doing work 'outside the usual course' of its business," Tony West, Uber's chief legal officer, said during a press call with reporters on Wednesday. "Just because the test is hard doesn't mean that we will not be able to pass it."

"Because we continue to believe drivers are properly classified as independent... drivers will not be automatically reclassified as employees, even after January of next year," he said.

California sets the stage

What happens in California rarely stays there. By dint of its size, the Golden State often sets legal and regulatory standards for the country. The state is the largest by both population and economic activity, and that size means companies around the world have to meet its often-strict and precedent-setting standards if they want to tap the lucrative market.

In addition to AB 5, the state passed the California Consumer Privacy Act, which sets standards for collecting information online and goes into effect in January. The state's rules and laws on fuel efficiency, emissions and air quality have affected automakers around the world. And the California Assembly just passed a bill that would allow college athletes to be paid for the use of their likeness.

California is close to reclassifying gig economy workers as employees

California is close to reclassifying gig economy workers as employees The California State Senate has approved Assembly Bill 5, voting 29 to 11 in favor of requiring gig companies like Uber and Lyft to recognize independent contractors as employees. It's not a law just yet -- it has to go through the State Assembly and secure California Governor Gavin Newsom's signature after this -- but it's close to becoming one. The New York Timessays the State Assembly vote is expected to be a mere formality, and Newsom is expected to sign the bill into law, seeing as he endorsed it. If the bill does become a law, it'll go into effect on January 1st.

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 How Uber , Lyft and Others Could Be Upended By California ’s New Law | WSJ - Продолжительность: 6

ballot initiative in California to counteract the effects of the state’s recently passed gig worker bill . And the companies have argued that the law represents an existential threat to their business After AB5 passed, though, Uber and Lyft warned that drivers could lose their flexibility to drive when they

San Francisco and Oakland passed the earliest laws in the US curbing the use of facial recognition technology, and San Francisco was among the first cities to curb Airbnb's business, requiring hosts to be registered with the city.

AB 5 could serve as a first step to broader oversight of the gig economy. Already New York City ensures drivers earn at least $17.22 per hour for each trip they make and has put limits on fleet sizes to prevent congestion. Washington state and Oregon have considered legislation similar to AB 5.

Just because someone really needs to work does not mean that their rights as a worker should be stepped all over.
Edan Alva, ride-hail driver

Michael Droke, a labor and employment partner at Dorsey & Whitney, said AB 5 will likely spur other states into action.

"While limited workers to California, other states are likely to enact similar legislation," Droke said.

Support for AB 5 was evident among ride-hail drivers in California. Thousands of drivers across the state rallied to whip up support for AB 5 as it made its way through the legislature. They protested in front of Uber's San Francisco headquarters and organized a caravan from Los Angeles to Sacramento. Many met with lawmakers to push for the bill.

"AB 5 is only the beginning," according to Edan Alva, a ride-hail driver who was involved in AB 5 organizing with the group Gig Workers Rising. He says the momentum for change is building. "Just because someone really needs to work does not mean that their rights as a worker should be stepped all over."

Uber hit with new lawsuit on whether its drivers are employees

Uber hit with new lawsuit on whether its drivers are employees After Uber said a proposed California law won't necessarily apply to it, drivers have begun to fight back.

Uber and Lyft have said the majority of their drivers don't want to be employees, a status that would change the relationship between the companies and the workers.

The companies have said that if they couldn't strike a deal on AB 5, they'd take the issue to California voters by sponsoring a ballot initiative in November 2020 that would exempt them from the law. Along with DoorDash, Uber and Lyft have said they'd spend $30 million each to sponsor the initiative.

"We are fully prepared to take this issue to the voters of California to preserve the freedom and access drivers and riders want and need," Adrian Durbin, a Lyft spokesman, said in an emailed statement.

Originally published Sept. 11.

Update, 2:07 p.m.: Adds attorney comment. Update, 3:11 p.m.: Adds comments from Tony West, Uber's chief legal officer.

Read More

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