The Biggest Labor Scam In Modern History?

Threatened with regulation, multibillion-dollar gig economy employers convinced California voters this week to pass a ballot initiative that exempts app-base rideshare and delivery services from state wage and hour laws.

Uber and Lyft, ridesharing services, and DoorDash, a meal delivery service, among others, raised more than $200 million to conduct a supposed voter initiative called Proposition 22, which is believed to be the most expensive voter initiative in American history.

By approving Prop. 22, California voters permitted app-based employers to classify their drivers under state law as “independent contractors” who are ineligible for minimum wage, overtime, health insurance and reimbursement for expenses.

The gig employers’ $200 million purse bought a comprehensive media campaign but another factor may be even more critical to the campaign’s success – the gig employers were able to use their apps to warn actual customers and drivers of a “parade of horribles” (i.e. higher prices) that might ensue if their drivers were classified as employees instead of  independent consequences.

Moreover, they worded the actual ballot measure in an “artful” manner. Voters were told that failure to approve the measure would result in drivers having “less choice about when, where, and how much to work .”

Bottom line – the gig employers used a tool meant to be used by voters – not big business – to evade a law that was passed by voters’ elected representatives in California’s General Assembly for the purpose of protecting workers in California.

Continue reading “The Biggest Labor Scam In Modern History?”

End Of The Road For ‘Misclassification’ of Workers by Lyft and Uber?

California Attorney General Xavier Becerra filed a motion Wednesday to enjoin Uber and Lyft from continuing to classify ride-hailing drivers as independent contractors rather than employees.

The motion, filed in San Francisco Superior Court, follows the 2019 passage of Assembly Bill 5 (AB5), a law codifying a landmark California Supreme Court ruling that places the burden on employers to show they are properly classifying workers as independent contractors rather than employees.  

In Dynamex Operations West, Inc. v. Superior Court, California’s high court said most workers should be classified as employees and receive sick leave and unemployment and workers’ compensation. 

Though AB5 went into effect on Jan. 1, Lyft and Uber continue to classify their drivers as independent contractors, while pocketing the cost of employee benefits. 

Along with several other app-coordinated services,  Uber and Lyft are furiously promoting a ballot measure for the November election to exempt gig workers from the AB5 rules. Continue reading “End Of The Road For ‘Misclassification’ of Workers by Lyft and Uber?”