Uber drivers also protested outside the company’s headquarters in May.
James Martin / CNET
Uber and Lyft may be forced to classify their drivers as California employees in the coming weeks. Prosecutor General Xavier Becerra announced on Wednesday that he would file an injunction against the two companies to accelerate an already heated battle between California and hail services.
The injunction comes after Becerra and Los Angeles, San Diego, and San Francisco city lawyers sued Uber and Lyft last month. They say the companies are Violation of a state law called AB 5 by refusing to turn their drivers into employees.
“It is time for Uber and Lyft to face up to their responsibilities and the people who make them successful: their workers.” Becerra said in a statement. “Misclassifying your employees as ‘consultants’ or ‘independent contractors’ simply means that you want your employees or taxpayers to pay the bill for obligations you have as an employer … This is not the way to do business in California do.”
The debate about the performance of gig workers has been raging for years. Several lawsuits were filed against Uber, Lyft and other gig economy companies in 2013. But now that the novel coronavirus pandemic has shaken society, this debate has intensified.
Currently, most workers are for gig economy companies like Uber, Lyft, Instacart, Postmates and DoorDash classified as an independent contractor. This means that these workers pay for their own car, phone, gasoline, and vehicle maintenance. They also do not receive basic work benefits such as minimum wage guarantees, overtime pay, health insurance and sick leave.
According to AB 5, which entered into force in California on January 1, companies that use independent contractors could be asked to convert their workers into workers.
California was the first state to pass a law specifically addressing gig workers. But other countries have started to follow suit. Washington, Oregon, New York and New Jersey are currently considering laws similar to AB 5.
The companies had already been actively fighting AB 5 before the law was passed last autumn. Both Uber and Lyft are struggling to be profitable and labor costs could add millions of dollars to their bottom line.
The two hail fighting companies are part of a coalition of gig economy companies that sponsor a November election initiative to exempt them from AB 5. A total of $ 110 million has been raised to support the “Protect App-Based” measure, “Drivers and Services Act,” and Uber and Lyft said they will spend more on the campaign if needed. The measure will be released on Thursday officially included in the California poll.
Look at that:
Uber, Lyft drivers call for protective equipment during the corona virus …
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“We believe that the courts should let voters vote,” said a Lyft spokeswoman. Regarding the injunction, she said, “It would be incredibly harmful to millions of people and the California economy to approve this application 100 days before the voters’ decision, and we will reject it.”
Uber has warned that if he is forced to turn his drivers into employees, 76% of them could lose their jobs on the hail platform. The company says this is because prices could go up and fewer people would use Uber to travel.
“The vast majority of drivers want to work independently, and we’ve made significant changes to our app to ensure that it continues to do so under California law,” said a Uber spokesman. “When more than 3 million Californians are unemployed, our elected leaders should focus on creating jobs, not trying to shut down an entire industry.”
While many drivers say they prefer to remain independent contractors, thousands of others have largely supported AB 5. On Wednesday, a caravan of around 50 drivers protested in front of Uber CEO Dara Khosrowshahi’s home in San Francisco and urged the company to drop the election measure in November.
“Minimum wage laws and other health and safety regulations were created to ensure that people in poverty can live with dignity and earn the fair value of their jobs,” said Edan Alva, an Uber driver and organizer, during the protest. “Drivers shouldn’t go into the Uber CEO’s office and take his money. Why should gig companies be allowed to steal the value of our work?”
If the judge granted Becerra’s injunction, Uber and Lyft would be required to comply with AB 5. Becerra will file the injunction on Thursday and, according to Politico, will request an appointment for the hearing on July 23.
“Drivers are California law employees and there is no reason why they should be denied basic workplace benefits,” said San Francisco City Attorney Dennis Herrera in a statement. “Despite a campaign of misinformation, nothing prevents Uber and Lyft from correctly classifying drivers and giving them flexibility.”