California judge finds Prop 22 gig worker measure unconstitutional

A California judge has ruled that Proposition 22, the measure that allows companies like Uber and Lyft to keep classifying app-based drivers in the state as independent contractors, is unenforceable and unconstitutional. According to the San Francisco Chronicle, Alameda County Superior Court judge Frank Roesch found that Prop 22 illegally “limits the power of a future legislature to define app-based drivers as workers subject to workers’ compensation law.”

Proposition 22 passed by a wide margin in the state when most people voted in favor of it in last year’s November elections. Companies were legally obligated to classify gig workers as full-time employees under Assembly Bill 5 A (AB5), which was passed in 2019, but some (like the aforementioned ride-sharing firms) continued to treat them as contractors. Uber, Lyft, Instacart and DoorDash poured over $220 million into campaigning for Prop 22 in order to overturn AB5, and the move clearly worked. 

The measure requires gig companies to provide their contractors with healthcare subsidies and a wage floor, but it also exempts them from having to classify their workers as employees with appropriate benefits and protections. While those in favor of the proposition argue that it would allow workers to keep their independence while enjoying benefits they didn’t have before, not everyone’s happy with the development. A group that includes the Service Employees International Union and the SEIU California State Council sued California earlier this year to overturn the proposition. 

In his ruling, Roesch specifically singled out Section 7451 of the measure, which states that any future law related to collective bargaining for app drivers must comply with the rest of the proposition. “It appears only to protect the economic interest of the network companies in having a divided, ununionized workforce, which is not a stated goal of the legislation,” he wrote in his decision. He also found it unconstitutional that any amendment to the measure requires a seven-eighths vote of approval to pass in the state Legislature.

If the ruling stands, gig companies like Uber and Lyft may have to spend hundreds of millions paying for healthcare and other additional benefits for their drivers. At the moment, though, Prop 22 is still in effect, and gig companies are already planning to appeal. An Uber spokesperson told The Chronicle:

“This ruling ignores the will of the overwhelming majority of California voters and defies both logic and the law. We will appeal and we expect to win. Meanwhile, Prop. 22 remains in effect, including all of the protections and benefits it provides independent workers across the state.”

Source: https://www.engadget.com/california-judge-finds-prop-22-unconstitutional-043822868.html?src=rss
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The Article Was Written/Published By: Mariella Moon

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Two Uber passengers dead after suspected street racer ‘cut the car in two’

<p>Incident occurred on Saturday night during police pursuit</p>

Source: https://www.independent.co.uk/news/world/americas/uber-houston-street-race-dead-brian-tatum-b514977.html
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Uber and Lyft get last-minute California reprieve

OAKLAND, Calif. — A California appeals court has stayed an order that would have forced Uber and Lyft to reclassify their drivers, giving the companies a reprieve just hours before they planned to halt operations in California rather than comply.

A previous court order compelled Uber and Lyft to stop classifying their drivers as independent contractors by the end of Thursday. The companies said that if they did not win a reprieve, they would have no choice but to temporarily shut down in California because they do not have the time to make necessary changes to their workforces.

But California’s 1st Circuit Court of Appeal granted the companies’ request for a stay on Thursday morning.

The decision delays Uber and Lyft’s plans to halt their operations in California and buys them more time to fight a lawsuit from California Attorney General Xavier Becerra accusing them of violating California law by misclassifying their drivers.

Becerra sued the companies for running afoul of a new state law, Assembly Bill 5, that broadly requires more employers to treat their workers as employees, not independent contractors, under a framework created by the California Supreme Court.

A judge last week granted Becerra’s request for an injunction forcing the companies to reclassify their workers; the companies had urged the courts to wait as the underlying legal case played out.

Oral arguments are set for Oct. 13. Less than a month after that, California voters will make a critical decision by voting on Proposition 22, a measure sponsored by gig companies that would let them continue to treat workers as contractors while offering some wage and benefit guarantees.

Source: https://www.politico.com/states/california/story/2020/08/20/uber-and-lyft-get-last-minute-california-reprieve-1310874
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California judge orders Uber, Lyft to reclassify drivers as employees

Uber and Lyft must reclassify their California drivers as employees under a preliminary injunction granted Monday by a San Francisco judge.

Why it matters: The ride-hailing companies, along with other gig economy firms, are resisting classifying their drivers as employees, which labor advocates say would give the workers greater benefits and rights. A new California law codified stricter requirements before companies can classify workers as contractors.

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• The companies are also behind a California ballot measure that would keep drivers as contractors and provide them with some benefits.
• The new ruling, which comes in response to a request from California’s attorney general, gives the companies 10 days to appeal the decision before it goes into effect. They hope to use that appeal to get a longer stay on the ruling.

From Uber:

“The court’s ruling is stayed for a minimum of 10 days, and we plan to file an immediate emergency appeal on behalf of California drivers. The vast majority of drivers want to work independently, and we’ve already made significant changes to our app to ensure that remains the case under California law. When over 3 million Californians are without a job, our elected leaders should be focused on creating work, not trying to shut down an entire industry during an economic depression.”

Uber spokesperson

From Lyft:

“Drivers do not want to be employees, full stop. We’ll immediately appeal this ruling and continue to fight for their independence. Ultimately, we believe this issue will be decided by California voters and that they will side with drivers.”

Lyft spokesperson

Source: https://www.axios.com/california-judge-orders-uber-lyft-to-reclassify-drivers-as-employees-985ac492-6015-4324-827b-6d27945fe4b5.html
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Uber, Lyft sued in California over alleged wage theft

A California agency is suing Uber and Lyft over alleged wage theft, saying the ride-sharing companies have misclassified drivers as independent contractors….

Source: https://thehill.com/policy/transportation/510841-uber-lyft-sued-in-california-over-alleged-wage-theft
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Uber plans to lay off another 3,000 employees

Less than two weeks after Uber shared plans to lay off 3,700 employees, the company announced that it will let another 3,000 workers go. In other words, in the course of a month, Uber has made plans to get rid of roughly a quarter of its workforce.Ub…

Source: https://www.engadget.com/uber-lay-offs-3000-employees-160758862.html
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Uber will lay off 3,700 full-time employees

Uber plans to lay off 3,700 full-time employees, it revealed in a filing with the Securities Exchange Commission today. That represents about 14 percent of its 26,900 employees, CNBC notes.“Due to lower trip volumes in its Rides segment and the Compa…

Source: https://www.engadget.com/uber-layoffs-coronavirus-135801409.html
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