It ’s been a long road to ordinance for Uber and Lyft in their house state of California , but it may be coming to an just end — one that would see their monolithic workforce of driver - contractor eventually given legal employee status .
State AG Xavier Becerra , along with the Attorneys General of Los Angeles , San Francisco , and San Diegoannouncedin a press release this good afternoon their intention to file an injunction against the DoT companies to “ immediately halt the outlaw misclassification of their driver as independent contractors . ” The enjoining itself is expected to become public tomorrow , though it ’s unclear if it will be granted .
“ Misclassifying your workers as ‘ consultants ’ or ‘ independent contractor ’ simply stand for you want your workers or taxpayer to foot the neb for obligation you have as an employer , ” Becerra wrote . “ That ’s not the manner to do business in California . We ’re seeking a court of law monastic order to force Uber and Lyft to bring by the rule . ”
Attorney General Xavier BecerraPhoto: Stephen Lam/ Getty
The rules , in this slip , being the landmarkDynamex decisionmade by the state ’s highest court over two year ago , as well as Assembly Bill 5 , which entrenched that court ruling into state law . AB5 passedlast Septemberand occur into effect on January 1 , but gig economy company such as Lyft and Uber have thus far ostentate the fresh limitation .
Becerra aright identify the only major innovation of so - called “ transportation meshwork companies ” ( TNCs ) as being their business model : one that makes drivers responsible for the sorts of expenses an employer normally takes on ( policy , health care , throttle , vehicle wear , etc . ) while relieving these same companies of introductory debt instrument like lower limit wage and extra time earnings . That Becerra even require to go this far says a majuscule deal about the sorts of people run TNCs . “ Today ’s action by the Attorney General is another firm signaling to voter that these company will do anything , include offend the law — for boost their profits , ” Bob Schoonover , president of SEIU California , wrote in a statement to press .
“ They take the note value of labor from those doer , they make it into their own profit . And those prole are at higher risk and are piteous as a result , ” Edan Alva , a Lyft driver , told Gizmodo . “ It ’s no different than any other thievery . ”
Alva was among the drivers who submitted testimony in the lawsuit filed by this same chemical group of AGslast month . Starting as a part - fourth dimension driver six yr ago , Alva judge to make Lyft his elemental germ of income after lose his full - clip Book of Job two years ago . It was at that metre Alva said he realized “ precisely how unrealistic and how predatory this business simulation is . ” While the myriad associated price and discrepant income made it difficult for him to settle hourly recompense of driving on Lyft full - clip , Alva state Gizmodo that his lucre were “ significantly below minimal earnings . ”
originally in the day , Alva and an calculate 100 other rideshare driversprotestedoutside the home of Uber CEO Dara Khosrowshahi aim , among other signs , a banner reading “ A stealer LIVES HERE . ” Uber and many other ridesharing companies have invested millions in a voting measuring stick to overturn AB5 as well as interest groups meant to convince drivers that their “ independence ” is worthful . ( Obviously , it is , though the value tends to run upward . )
“ We conceive the courts should have the voters decide . Trying to force driver to give up their independence 100 days before the election threatens to put a million more people out of work at the worst possible time , ” Lyft told Gizmodo in an e-mail . “ The California Legislature passed a law that was so badly drafted it ruin thousands of task before the ink was dry . If the courts were to grant the Attorney General ’s postulation , it would have a devastating effect on millions of Californians at the worst possible meter . Our voting measuring make the Legislature ’s misunderstanding , protects millions of Califorrnians ( sic ) who trust on rideshare and on - need delivery serving , self-governing declarer and small-scale businesses scramble to get through COVID . Our ballot measure has potent support among voter , number one wood and millions of customer and we trust the elector should be allowed to decide this issue in November . ”
Uber likewise , but more succinctly , state that “ the vast majority of number one wood want to work independently , ” though the company has not yet furnish Gizmodo with any information to back up that title . “ We ’ve already made pregnant changes to our app to ensure that remains the case under California law . When over 3 million Californians are without a chore , our elected leaders should be focused on create study , not endeavor to keep out down an entire industry . ”
We will include the text of the injunction once it becomes usable .
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