•   
  •   
  •   

USWhat California's AB 5 means for apps like Uber, Lyft

08:25  11 september  2019
08:25  11 september  2019 Source:   usatoday.com

Lawsuit accuses Lyft of not protecting its female passengers

Lawsuit accuses Lyft of not protecting its female passengers A new lawsuit out of California claims Lyft isn't doing enough to protect female passengers. The complaint, filed in the company's home city of San Francisco, includes at least 14 unnamed women who say they were either sexually assaulted or raped by their Lyft drivers. In one instance, a woman says she was raped by her driver after he told her, "I love you." Another says her driver asked her for money and sexual favors, and said, "gratuity is for pocket and yummy is for me." Both women add Lyft did not tell them if it had fired the drivers for their behavior.

California ' s AB 5 may have passed, but questions remain on how it will be implemented — and how far companies will go to stop it from being enacted. Many tech companies, including Uber and Lyft , which have been among the most vocal opponents, will have to rework their core business models.

California Assembly Bill 5 or AB 5 is a state statute that codifies into law a landmark Supreme Court of California case, Dynamex Operations West, Inc. v. Superior Court.

A controversial piece of legislation passed the California legislature late Tuesday evening, codifying and clarify a landmark state Supreme Court decision that limits whether companies can classify their workers as independent contractors.

What California's AB 5 means for apps like Uber, Lyft© Gabrielle Canon/The Desert Sun Concerned citizens rally in support of AB 5, legislation that would reclassify independent contractors as employees, in Sacramento, Calif., on Monday, Sept. 9, 2019.

Expected to have wide-reaching implications that resonate across the country — including posing an existential crisis for businesses built with independent, on-demand labor — the bill is now on its way to Gov. Gavin Newsom’s desk.

Uber, Lyft drivers are one step closer to becoming employees in California

Uber, Lyft drivers are one step closer to becoming employees in California AB 5, a proposed bill to reclassify ride-hail drivers as employees, passes the state senate. Now it's headed to the governor's desk.

California just passed a landmark law to regulate Uber and Lyft . Drivers will likely get health care The California bill, known as AB 5 , expands a groundbreaking California Supreme Court decision last Uber ’ s profit model, like that of other companies in the gig economy, depends on all the money

A new law in California seeks to rewrite the rules of work and what it means to be an employee. 1, seeking to compel all companies ― but notably those like Lyft and Uber ― to treat more of their workforce The law represents a cataclysmic shift for workers who depend on apps to get gigs, and

“This is one of the few times in recent history when so many people will be impacted by a single decision,” said Ryan Vet, an entrepreneur, and gig-economy expert who founded Boon, an on-demand health care platform. He said he sees positives and negatives in the new law, that is "good for the workers, but will also implode the gig economy as we know it today" with increased costs.

"We have been able to get a quick and easy, safe ride from one place to the next," he added. "We have been able to get food delivered to our door, or a package delivered on Sunday. This is not only going to affect the worker but the consumers that are benefiting from these services — it is more than a two-sided equation."

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 approved a landmark bill that would force gig-economy companies like Uber , Lyft and others to treat many workers as employees instead of independent contractors, potentially devastating their business and drastically altering the ride-hailing industry as we know it.

It looks like AB 5 is going to pass and be signed by the governor but what does this mean for Uber and Lyft drivers in the state of California ? Will we

The governor has already voiced his support and is expected to sign it. Other states could soon follow suit.

Even though the bill could soon become law, legislators speaking on the Senate floor ahead of the vote said negotiations would continue to ensure a smoother implementation.

"We did not get to evaluate every category of worker," Toni Atkins, the Senate president pro tempore said during discussion. Many of us have pledged to continue that conversation. I don't know what kind of comprehensive process we would anticipate doing, because it was found to be way more complex than any of us imagined." She added that those conversations are ongoing with stakeholders.

At the 11th hour, 12 new amendments that sought to add more exemptions or streamline the application of the law were brought to the Senate floor by Republican senators, but all failed to make it into the final legislation.

Uber intends to treat drivers as contractors despite California bill

Uber intends to treat drivers as contractors despite California bill 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.

A California bill set to become law would turn many "gig economy" workers into full employees, although experts say its biggest impact could be on jobs outside companies like Uber and Lyft . Trucking firms, news publishers, cleaning companies and software companies could all find it harder

California labor law meant to protect gig-economy workers under fire - Продолжительность: 3:20 CBS This Morning 8 California ' s AB 5 Gig Economy Bill Impacts More Than Uber & Lyft | The Business Newsroom Episode 36 Bill AB 5 Passed: How will it impact independent contractors in California ?

The bill, which passed 29-11, already included carveouts for a range of industries — but not for gig-reliant businesses, which are expected to be most impacted by the new law.

"Today we are determining the future of the California economy," said Sen. Maria Elena Durazo, D-Los Angeles, introducing the legislation. Speaking directly about the tech industry, which pioneered the gig model and prides itself on modernizing services and work, she added, "Let’s be clear, there’s nothing innovative about underpaying someone for their labor and basing an entire business model on misclassifying workers."

What California's AB 5 means for apps like Uber, Lyft© Provided by USA TODAY, a division of Gannett Satellite Information Network, Inc.

Organizers are now hoping that the legislation will open the possibility that drivers can form a union, which they were not able to do as independent contractors.

“AB 5 is only the beginning,” said Edan Alva, a driver with Gig Workers Rising. “I talk daily to other drivers who want a change but they are scared. They don’t want to lose their only source of income. But just because someone really needs to work does not mean that their rights as a worker should be stepped all over. That is why a union is critical. It simply won’t work without it.”

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.

So it looks like uber and lyft drivers in California are becoming employees [ AB 5 Update!!] California ' s AB 5 Gig Economy Bill Impacts More Than Uber & Lyft | The Business Newsroom Episode 36 - Продолжительность: 11:13 Matterhorn Business Development 8 811 просмотров.

So it looks like uber and lyft drivers in California are becoming employees [ AB 5 Update!!] - Продолжительность: 47:51 The Rideshare Guy 18 514 просмотров. Here' s what a Calfornia law could mean for Uber and Lyft - Продолжительность: 4:04 CNBC Television 8 116 просмотров.

So what's changing?

Millions of workers are classified as independent contractors and don’t qualify for protections under the Fair Labor Standards Act, Americans with Disabilities Act, or the Civil Rights Act. They also aren’t guaranteed other rights afforded to employees, including minimum wage, overtime pay, or unemployment insurance. Now, for many—especially those working in the tech sector — that will all change.

While that could be a big win for workers, enactment of AB 5 could threaten the future of the gig economy that was built on contracted, on-demand labor. Many tech companies, including Uber and Lyft, which have been among the most vocal opponents, will have to rework their core business models. They stand to lose billions in the process and have threatened to pass those costs onto consumers.

More: What is California's AB 5? The bill could make gig economy workers like Uber drivers employees

AB 5 applies a strict “ABC test” to determine workers’ employment status and puts the burden of proof on employers:

  • (A) that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work
  • (B) that the worker performs work that is outside the usual course of the hiring entity’s business
  • C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity

With the aim to crack down on misclassification and close loopholes that enable companies to skirt labor protections and lighten their tax loads — which has resulted in an estimated $7 billion in losses of payroll tax revenue — the bill was championed by organizers hoping to secure and broaden benefits for tech workers, and pave the way for unionization.

Uber to limit drivers' app access to comply with NYC regulation

Uber to limit drivers' app access to comply with NYC regulation Uber to limit drivers' app access to comply with NYC regulation

Critics also warn that workers accustomed to having freedom and flexibility, including those who give rides, deliver food, or perform other app-based services, will now be forced to conform to typical employee expectations, like scheduled hours and stronger oversight.

Drivers against the legislation have raised concerns about whether the workforce will be cut, as the companies face higher costs to come into compliance.

When will the changes happen?

It's unlikely that changes will move quickly. While the legislation provides for retroactive enforcement, used primarily for litigation, the law won't be implemented until next year. Plus, there are still some legal obstacles in the way and a lot of paperwork will need to be filed.

“I think this is too complicated to change things overnight,” said Domenique Camacho Moran, a labor law expert, and partner at the New York-based firm, Farrell Fritz. “It is going to require dramatic changes. All of those [independent contractors] will have to be vetted as employees and onboarded—that’s a process.”

More: Why some on-demand drivers are fighting for — or against — California's gig economy bill

Colombia can only suspend app drivers' licenses for 3 years, not 25-court

Colombia can only suspend app drivers' licenses for 3 years, not 25-court Colombia can only suspend app drivers' licenses for 3 years, not 25-court

She added that the law will likely face immediate legal challenges, which could delay its implementation while the issues are worked out. “The laws as they exist did not envision these gig economy workers,” she said. “You could get a ruling relatively quickly that stays the enactment of the law while the legal battle takes place,” she said.

What California's AB 5 means for apps like Uber, Lyft© Gabrielle Canon/The Desert Sun Jermaine Brown, a Lyft driver, asked lawmakers in Sacramento, Calif., to preserve his status as an independent contractor on Monday, Sept. 9, 2019.

Gig economy opponents haven't given up

Opponents to the law are already preparing for the next round of battles.

California Governor signs landmark gig-worker bill

California Governor signs landmark gig-worker bill "The need to create lasting economic security for our workforce demands action. Assembly Bill 5 is an important step," Gov. Gavin Newsom says.

Even before the measure passed, Uber, Lyft, and food delivery company, DoorDash, invested a collective $90 million to bring the issue to voters as a proposition on the next ballot. Their plan preserves independent contractor status of their workers while offering basic protections and benefits, including a minimum earnings floor, access to health care plans not tied to their employment, and representation in the companies to better address issues.

As Uber put up the financing to fight AB 5 and to fund the proposition, it also cut hundreds of employees in its second large-scale layoff this year. Earlier this year, 400 employees were cut from the marketing department. On the same day of the AB 5 vote, more than 400 engineers and product team employees were let go, and the company said it was reassessing its priorities.

“While certainly painful in the moment, especially for those directly affected, we believe that this will result in a much stronger technical organization, which going forward will continue to hire some of the very best talent around the world,” an Uber spokesperson told TechCrunch.

Meanwhile, the proposed proposition is already getting pushback. California Labor Federation, an organization that represents 1,200 unions, is also ready to take on the tech companies at the ballot box. After the initiative was announced, the org posted on its website that it will "meet the gig companies’ absurd political spending with a vigorous worker-led campaign to defeat this measure to ensure working people have the basic job protections and the right to organize a union they deserve under the law."

What California's AB 5 means for apps like Uber, Lyft
What California's AB 5 means for apps like Uber, Lyft
What California's AB 5 means for apps like Uber, Lyft
What California's AB 5 means for apps like Uber, Lyft
What California's AB 5 means for apps like Uber, Lyft
What California's AB 5 means for apps like Uber, Lyft
What California's AB 5 means for apps like Uber, Lyft
What California's AB 5 means for apps like Uber, Lyft
What California's AB 5 means for apps like Uber, Lyft
What California's AB 5 means for apps like Uber, Lyft
What California's AB 5 means for apps like Uber, Lyft
What California's AB 5 means for apps like Uber, Lyft
Lyft representatives have emphasized that even without the legislation they are intent on changing the status quo and improving their drivers' experiences. But they are committed to fighting the bill to ensure those changes don't include hiring their drivers as employees.

More: Why some on-demand drivers are fighting for — or against — California's gig economy bill

In recent years, workers have voiced concerns about the lack of power they have and how easily the giant companies can change earnings or dismiss their complaints. Many aren’t buying the new promises of better treatment and are supporting the uncertainty, in favor of better representation.

“The ability to make some on-demand extra cash is life-changing and I can see that,” said a driver and pro-AB 5 activist, Jeff Parry, earlier this week. He added that he isn’t worried about the threats to the companies, and how that could affect drivers.

“What’s more likely to happen is [they] find a may to make it work with the flexibility,” he said. “There’s always going to be someone who will not fit into that model. But if it works for the majority? I don’t see that as a bad thing.”

This article originally appeared on USA TODAY: What California's AB 5 means for apps like Uber, Lyft

Read More

California Governor signs landmark gig-worker bill.
"The need to create lasting economic security for our workforce demands action. Assembly Bill 5 is an important step," Gov. Gavin Newsom says.

—   Share news in the SOC. Networks

Topical videos:

usr: 1
This is interesting!