California approves bill to overhaul the Gig financial system – My Blog

ImageSupporters of a California bill that reclassifies contractors as employees outside Sacramento, California State Capitol last month.CreditCreditRich Pedroncelli / Associated PressSept. California lawmakers on Tuesday passed a bill requiring companies like Uber and Lyft to treat contract workers as employees, a move that could reshape the show.

California approves bill to overhaul Gig financial system

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CreditCreditRich Pedroncelli / Related Press

SACRAMENTO – California lawmakers on Tuesday allowed a bill that requires companies to like Uber and Lyft to treat hired workers as employees, a switch that may also reshape the show's financial system and that It provides gasoline for a year-long debate about whether or not the nature of the work has turned into too much panic.

The bill passed 29 to 11 votes in the Issue Senate and should always apply to companies based primarily on applications, primarily without reference to their efforts to negotiate an exemption. California Governor Gavin Newsom has enacted the bill this month and should signal it after approval by the General Assembly in what is expected to be a formality. Below the measure, which may be effective until January 1, workers should always be designated as employees as a change of contract if a company exercises regularity over how they assume their responsibilities or if their work is a favorite alternative segment. of a company.

The bill may also influence other states. A coalition of labor teams is promoting identical legislation at Unique York, and bills in Washington Issue and Oregon that were comparable to those in California but failed to achieve may well also appear to be renewed. The only city in York has passed a minimum wage for humpback drivers last year, but now it has not struggled and classified them as employees.

In California, the legislation will take effect on at least 1,000,000 workers who had stopped receiving an extended standard of outsourcing and franchise work, making the employer-employee relationship more than arm-size. Many people were pushed to the contractor's online page without earning a living so that their favorite protections received a minimum wage and unemployment insurance protection. Agitated drivers, meal couriers, janitors, salon workers, construction workers, and franchise owners could very well now also be reclassified as employees.

Nevertheless, the passage of the bill, which codifies and extends a decision of the California Supreme Court in 2018, threat gig financial system companies be satisfied Uber and Lyft. Hunchback companies – along with primarily application-based services that provide meal transportation, home repairs, and dog walking services – have built their businesses with much less expensive independent labor. Uber and Lyft, which have millions of drivers in California, have this work contract that gives us flexibility. They warned that recognition of drivers as employees could also abolish their companies.

"This may also have essential reverberations for the duration of the country," said David Weil, a leading labor department, legitimate for the duration of the Obama administration and the creator of a guide to the so-called crack in business location. . He argued that the bill could also find an original brand barrier to employee protection and force alternative owners to rethink their trust in contractors.

California lawmakers said the bill, recognized as Assembly Project 5 and proposed by Congresswoman Lorena Gonzalez, a Democrat, would set a tone for the future of the work.

"Lately, the so-called concert companies have shouted to themselves because the modern day tomorrow, a future that construction companies don't pay for Social Security or Medicare," said Sen. Maria Elena Durazo, a Democrat. "Let's be private: there's nothing modern about paying someone for their work."

She added, "Lately, we're determining the future of California's financial system."

Agitated drivers welcomed the approval of the bill. "I'm so good with the shared car drivers that they took the time out of their lives to share their stories, stand up, focus on the lawmakers and expect them to exercise to enjoy the pleasure of a victory," said Rebecca Stack-Martinez. , a driver and an organizer with the Gig Workers Rising team.

Uber did not immediately have an observation now, while Lyft said she was upset. "Lately, the political leadership of our deliveries has overlooked a really important substitute for reinforcing the overwhelming majority of drivers who decide on a solution that balances flexibility with traditional gains and benefits," said Lyft spokesman Adrian Durbin.

Working with gig models has been in the spotlight for years, as companies are happy with Uber, Lyft and DoorDash in the US – as well as Didi Chuxing in China and Ola in India – have grown and become gigantic, even because contractors in they trusted now did not represent the company. minimum benefits or compensation guaranteed to employees. One form of the companies themselves worked assiduously to include outside efforts to classify their workers as employees, resolution of collective actions drivers and warranties of principles that may need to threaten the driver freelancers online page.

While regulators in California and at least three other states – Unique York, Alaska, and Oregon – have found that top drivers were under-employed employees who comply with slender laws, they are happy to qualify for unemployment insurance protection, these discoveries may well be replaced by delivering laws that explicitly consider drivers to be hired. About half of the country's states have approved such provisions.

However, recently, the tide has started to change. Two Federal proposals filed since 2018, itself sought to redefine raffled workers are classified to allow extra unions of them. These proposals were reinforced by candidates for the Democratic presidential nomination, including Senators Kamala Harris, Bernie Sanders and Elizabeth Warren. Presidential candidates have also endorsed the California bill.

In Britain, Uber appealed to a labor court that drivers should always be classified as workers with a minimum wage and hurry. The country's Supreme Court report is expected to hear the case in the subsequent one-year case.

"Some benefit construct for some motorists seems inevitable," said Lloyd Walmsley, fair comparison analyst at Deutsche Bank who follows the humpback alternative.

A key question is how financial system companies will respond to California's original law. Industry employees estimate that having to rely on staff to locate contractors increases rates by 20 to 30 percent.

Uber and Lyft are responsible for the repeated warning that they should start scheduling affordable drivers at the time they are employees, diminishing drivers' ability to work when and with the configuration they solve.

The consultants said there is nothing within the law that requires employees to work hard shifts, and that Uber and Lyft have the legal right to continue allowing drivers to form their scheduling options.

Next, Uber and Lyft could interact to narrow down the selection of drivers who can work overtime or in much less busy markets; Construction drivers might very well now not generate adequate fees to work out their payroll fees as personnel. This would also lead to a reduced need for drivers in general.

Veena Dubal, a professor at the University of California at Hastings College of Law, said it may seem advantageous for Uber and Lyft to have incentives and pay bonus bonuses to ensure they have adequate drivers on their facet. highway to regulate the buyer, request different information more quickly than when they booked drivers.

"It makes no sense to them" to drastically restrict flexibility, she said.

Currently, about one of the companies has not yet finished the dispute. Uber, Lyft and DoorDash have committed to use $ 90 million reinforce a polynitiative that may in fact exempt them from the legislation. Uber also said it could well litigate misclassification of drivers in arbitration and pressure lawmakers to consider a separate bill that may, perhaps, by exemption from A.B. Impression of 5 when the legislative session begins in January.

California cities will have techniques to enforce the original law. In last-minute, tailor-made changes, lawmakers have given decent cities the right to sue companies that fail to comply.

The account is now not universally supported by drivers. Some objected to the myth that they were anxious that this could be exhausting to include flexible hours. After Uber and Lyft sent messages to California motorists and motorcyclists in August asking them to contact lawmakers on behalf of the companies, aides said they had seen an increase in calls.

As the bill finalized its bill in the Legislature, brave companies were looking for a deal that could perhaps build an original category of contractor-employee brand workers. They met with Governor Newsom's work teams and the workplace to negotiate a deal give drivers a minimum wage and the correct way to collectively place them, while no longer classifying them as employees.

However, in July and August, the work teams declined and the proposed agreement disintegrated. Some company employees have expressed cautious optimism in most recent days about a labor lawsuit following the approval of the bill.

Follow Kate Conger and Noam Scheiber on Twitter: @kateconger and @noamscheiber.

Report by Kate Conger of Sacramento and Noam Scheiber of Chicago. Adam Satarian contributed reporting from London.

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