California’s state Senate is set to vote on Assembly Bill 5 as soon as Tuesday.
If passed, the law could force Uber and Lyft to reclassify many drivers as employees rather than independent contractors.
That would be financially ruinous for the ride-hailing firms, as well as others like DoorDash which also depend on gig workers.
Instead, Uber and Lyft want to provide better pay and benefits on their own terms, including a minimum wage drivers would earn while carrying passengers, plus other collective-bargaining rights.
The three companies are now planning a multimillion dollar ballot proposal for 2020 if the bill is signed into law.
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Uber and Lyft’s day of reckoning is here.
California senators are set to vote as early as Tuesday on Assembly Bill 5, a proposed law that would expand many employment protections to drivers while potentially wreaking havoc on the company’s balance sheets.
The bill, as proposed in 2018 by Assemblywoman Lorena Gonzales, would codify a three-part test to determine a worker’s status as either an employee or independent contractor.
That test was first written in a 2018 Supreme Court decision in the case involving Dynamex. The court …read more
Source:: Businessinsider – Technology