US: California Lawmakers Pass Bill That Could Upend Uber, Lyft Model - PressFrom - US

USCalifornia Lawmakers Pass Bill That Could Upend Uber, Lyft Model

08:40  11 september  2019
08:40  11 september  2019 Source:

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.

AB5, the contentious California bill that would upend the gig economy model of Uber , Lyft and other tech companies, moved a step closer to becoming a law . Most recently, Uber , Lyft , and Doordash have committed to spending a combined million to oppose this legislation, while publicly offering a

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.

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

California Lawmakers Pass Bill That Could Upend Uber, Lyft Model© Justin Sullivan via Getty Images Rideshare drivers hold signs during a protest outside Uber headquarters in San Francisco in support of California labor legislation and a union push.

The legislation, AB-5, clarifies the conditions under which a worker should be considered an employee ― and therefore entitled to benefits like a minimum wage, unemployment and disability insurance, and a right to form a union. It follows an “ABC” formula that workers can be considered independent contractors (A) only if the workers are “free from the control and direction” of the company that hired them, (B) their work falls outside the usual business of the company and (C) they are engaged in work in an independent business of the same type as the company’s.

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.

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This week in rideshare news- the state of California is considering a new bill that could turn rideshare drivers into employees. Also, Uber introduces new

It makes exceptions for certain groups of workers, including real estate agents, freelance writers, hairstylists and barbers who set their own rates and hours.

The language of the bill is based on a 2018 California Supreme Court decision in the case of Dynamex Operations, which established the ABC test for classifying workers as employees versus contractors.

“The misclassification of workers as independent contractors has been a significant factor in the erosion of the middle class and the rise in income inequality,” the bill says.

Major tech companies such as Uber and Lyft, whose hordes of drivers are currently considered independent contractors, have been lobbying against the legislation. Their companies’ bottom lines would be dramatically affected by having thousands of drivers newly classified as employees for whom they’d have to pay certain benefits, overtime, minimum wages and more.

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.

SACRAMENTO, Calif.— California Democrats are poised to pass landmark employment legislation over the objections of two of the companies that would be most affected: Silicon Valley ride-sharing giants Uber Technologies Inc. and Lyft Inc. The bill already passed the State Assembly

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Hundreds of Uber and Lyft drivers with the organizing group Gig Workers Rising protested throughout California in late August, demanding AB-5’s passage and a union for drivers.

The legislation, which passed the California Senate in a 29-11 vote after overwhelmingly passing in the Assembly in May, will next go to Democratic Gov. Gavin Newsom, who is expected to sign it.

Several Democratic presidential candidates have come out in support of the bill and workers’ demands, including Sens. Kamala Harris (D-Calif.), Bernie Sanders (I-Vt.) and Elizabeth Warren (D-Mass.), and South Bend, Indiana, Mayor Pete Buttigieg.

“American history is full of shameful examples where powerful industries exploited workers in pursuit of greater profits,” Warren wrote in an op-ed in the Sacramento Bee in August. “In many industries today, it takes the form of worker misclassification.”

Exactly how the law would affect rideshare companies and their drivers when applied in practice is still unclear. Uber, Lyft and other companies have committed tens of millions of dollars to back a ballot initiative that would push a separate classification for rideshare drivers.

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.

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 Gov. Gavin Newsom has confirmed he would sign the bill , which is expected to be voted on by the Uber and Lyft appear to have failed in lobbying the state government for an exemption on the grounds Lyft told WSJ it has 325,000 drivers in California , and under an altered business model

The heads of Uber and Lyft have argued for workers to remain as independent contractors, suggesting that as employees they wouldn’t enjoy as much flexibility and proposing that the companies could meet some of the workers’ demands by establishing a drivers’ association and working with lawmakers to commit to things like minimum pay.

Driver-led group Gig Workers Rising called the tech leaders’ proposals “a watered-down version” of the demands drivers have been making for months. One organizer, Annette Rivero, told TechCrunch that there was “no truth” to the companies’ claim that the legislation would affect drivers’ flexibility.

“After I did my taxes, I was operating below minimum wage,” driver and organizer Mostafa Maklad, 35, told HuffPost during protests at Uber’s headquarters in May. He’s been driving for Uber and Lyft for the past four years, studying at City College of San Francisco by day and driving 40 to 50 hours a week by night. Maklad said he struggles to afford housing in San Francisco and lives with six other people in a two-bedroom apartment.

This article originally appeared on HuffPost.

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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