Rideshare giant Uber stated says it will fight the recent passage of a controversial labor bill in California, The Wall Street Journal reported on Thursday, September 12.
The landmark legislation AB5 passed the Senate on Wednesday (September 11) and is expected to be supported by the Assembly and signed into law by Gov. Gavin Newsom.
The bill challenges the definition of contractors in the gig economy and could lead to some workers being reclassified as employees, a move Uber is vowing to fight.
“Contrary to some of the rhetoric we’ve heard, AB5 does not automatically reclassify any rideshare drivers from independent contractors to employees,” Tony West, Uber’s chief legal officer, said in a call with reporters after the legislation passed, the WSJ reported. “AB5 does not provide drivers with benefits, nor does it give drivers the right to organize. In fact, the bill currently says nothing about rideshare drivers.”
Despite having minimal worker costs and being back by billions in investments, Uber and its competitor Lyft are each losing millions, the article statedsaid. Both companies want to be exempt from the proposed new law.
The bill puts the burden of proof on the employer and requires that companies classifying workers as contractors prove it based on new criteria.
Full Content: Wall Street Journal
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