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Gig Companies Launch Campaign to Get Referendum on California's 2020 Ballot


Last week, Uber, Lyft, and DoorDash launched a campaign in which these gig companies are attempting to put a referendum on the 2020 ballot in California which will provide them with an exemption from Assembly Bill 5 (previously signed into law earlier this year by Governor Gavin Newsom.)

For those needing a refresher, Assembly Bill 5 codifies the ABC test to determine whether a worker is an independent contractor or an employee.  Generally speaking, this ABC test makes it easier for workers to be classified as employees...and therefore entitled to protections of the Fair Labor Standards Act, the ability to unionize, obtain overtime, paid time off, etc.  Needless to say, gig companies that classify their workers as independent contractors have viewed Assembly Bill 5 as problematic.  Since the passage of Assembly Bill 5, there has been much speculation that these gig companies would try and find a way to carve out an exemption.  (When talks to have this exemption included in the language of Assembly Bill 5 fell apart, many expected a ballot referendum would be attempted.)

In an effort to try and attract support for the ballot measure, Uber and Lyft have promised to pay its drivers at least 20% more than the minimum wage rate along with $.30/mile to cover the wear and tear on vehicles.  Going one step further, the drivers would also be paid a stipend to cover healthcare costs and be given accident insurance.  Of course, all of this is in exchange for Assembly Bill 5 not applying to these companies or their workers.

While 2020 is still a ways off (and there is no guarantee that this referendum will actually get on the ballot), it is expected these gig companies will spend upwards of $90 million to get the measure before voters in the state next year.


For additional information:  https://www.latimes.com/california/story/2019-10-29/uber-lyft-doordash-fight-california-labor-law-ab5

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