Uber, Lyft and Dordash will submit papers for the referendum on Tuesday on the California 2020 ballot to protect app-based drivers and financing services. Voters will be asked to exempt ride-hailing companies at 5Ab, the law, which was approved by the ballot in September, outlining many aspects of TomTom’s economy.
With the exception of a few, AB5 companies need to hire workers, not as independent contractors. This is probably to thousands of California workers – Uber drivers and other jig workers who are classified as independent contractors – workers’ rights and first-time benefits.
These companies really don’t want to. Therefore, application-based driver contractors have been sued.
At a press conference announcing the ballot initiative in Sacramento on Tuesday, the company that filed the lawsuit did not find Uber and Lyft to be protected from AB5 protection. Instead, the campaign organized a bizarre coalition of ride-hailing drivers, a state chamber of commerce official and founder of Founters Against Drunk Driving.
“Our ability to maintain the flexibility of our work is in jeopardy,” said Akamine Kearney, one of the dozens of ride-hailing participants who attended the event.
As part of the ballot initiative, ride-hailing companies promise at least 2 percent more than the minimum wage for motorists, as well as c-cents per mile on clothing worn on cars. Companies pay a small amount of grants to pay for driver’s health care costs and accident insurance. It’s better than what drivers get, but far less than what they’ll get as an employee.
Meanwhile, news of the ballot initiative has surprised thousands of swords in the state that support AB5.
“After working for hours on the weekends, sleeping in our cars and living on poor wages, drivers gathered and supported AB1 from the public and lawyers. Elevator driver Eden Alva wrote that the driver, Eden Alva, wrote that Loft driver Edan Alva is claiming that he wants to spend $ 1 million to avoid liability rather than comply with the law. Alva is one of 20,6 ride-hailing drivers in the state, founded the Way-Drive Progress Coalition, a grassroots organization that represents app-based drivers.
Labor unions have also protested the decision, calling it a “corporate heel mary”.
“No corporation should rule the law, no matter how much it spends on a political campaign to rule the law,” Art Pulaski, chief executive editor of the California Labor Federation, said in a statement to Vox.
The ballot initiative is not surprising. Before the government Gavin Newsom signed IB, GIG companies alerted lawyers to their plans. Their decision to move forward with the referendum shows how much the tech companies are ready to go to prevent government control and give workers basic rights.
California AB5 bill, clarified
The California bill, known as AB5, expanded California’s Supreme Court decision last year called Dynamics. The decision and the bill suggest traders to use the so-called ABC test to determine if there are employees and employees. In order to hire an independent contractor, the business must prove that the worker is (a) free from the control of the company, b) is acting non-intermediary of the company’s business, and c) has an independent business in the industry if these three conditions are not met. They have to be classified as employees.
This is more clear than the ambiguous guidelines in federal law – and it still poses the biggest challenge to the profit model of Uber, Instacart, Postmates and other tech companies relying on a small army of independent contractors. Uber drivers have been struggling in court for years, failing that Uber will likely have to be reclassified as a staff of thousands of California drivers.
Because the bill was approved by the state legislature in May, California’s businessmen were surprised by the possibility of approval. The State Chamber of Commerce and dozens of industry groups worked to get a discount, and a long list of businesses was excluded from the bill: doctors, dentists, lawyers, architects, insurance agents, accountants, engineers, financial advisers, real estate agents and hairstylists who were in the salon. Rent a booth.
Especially Uber and Lyft were pushing for a discount on this bill. He begged the public for compromise. The companies hope to continue to consider drivers as contractors, and in return they promise to set company-backed funds for benefits such as choosing a driver’s passenger and setting a minimum wage rate, closing the pay period, and advocating for a driver.