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Uber and Lyft Ramp Up Opposition to California’s Assembly Bill 5


With California’s Assembly Bill 5 moving closer to becoming law with each passing day, Uber and Lyft have both been quite vocal in regard to their increased opposition to the bill.

Readers might recall that the California Legislature is currently considering whether to approve the language of Assembly Bill 5 and send it to Governor Gavin Newsom for signature.  In short, Assembly Bill 5 would implement a new statewide test for determining whether gig workers such as those at Uber, Lyft, GrubHub, etc., are employees or independent contractors.  (Spoiler alert, Assembly Bill 5 would make it easier for a gig worker to be classified as an employee which would mean many of these gig companies would have to pay these newly classified employees higher wages, provide for rest breaks, potential paid time off, etc)

With that being said, Uber and Lyft have both been trying to amend the language of Assembly Bill 5 to provide a carve out that would exempt certain gig workers from being classified as employees.  Thus far, those efforts have not derailed the legislation as the California Senate is currently considering whether to pass Assembly Bill 5 (without that carve out.)  However, Uber and Lyft have recently held meetings with lawmakers, promising an income floor, providing certain benefits, and giving their drivers an ability to raise concerns...in exchange for these gig workers remaining classified as independent contractors.  (And that is not counting the op-eds, paid protesters, and other lobbying efforts that are seeking to kill Assembly Bill 5.)

Regardless of what Uber, Lyft, and other gig companies do, there is a deadline for passage of Assembly Bill 5 as the California legislative session ends this Friday.  Whether this legislation can make it to the finish line in time remains to be seen.  Either way, this might come down to the wire.


For additional information:  https://www.sfchronicle.com/business/amp/Uber-circulates-new-gig-work-bill-as-alternative-14426247.php

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