'Calif. Judge Orders Uber & Lyft To Convert Their Drivers Into Employees Right Now'
'Calif. Judge Orders Uber & Lyft to Convert Their Drivers Into Employees Right Now.' The injunction was a victory won as much in the streets as in the courtroom. By Jacob Rosenberg, Asst. Ed., Mother Jones, Aug. 10, 2020. - Excerpts, Ed.:
A CA judge ruled today that Uber & Lyft must immediately convert their drivers into employees. The injunction will be delayed for 10 days, during which time the gig companies will likely appeal the decision. But the ruling delivers a heavy blow to the independent contractor model on which the gig economy is built. In May, CA Attny. Gen. Xavier Becerra sued Uber & Lyft to stop the misclassification of drivers as independent contractors instead of employees. He was joined by city attorneys in San Diego, San Francisco, & Los Angeles. In June, the group sought a preliminary injunction, asking a judge to force the companies to employ drivers immediately if it seemed likely they’d prove misclassification. Judge Ethan Schulman’s ruling today said that California had “amply demonstrated” that Uber & Lyft are likely “misclassifying their drivers.”
Didn’t all this already happen? Sort of. In Sept. 2019, CA Gov. Newsom signed Assembly Bill 5 into law. Gig companies were now required to employ their workers instead of treating them as independent contractors. This meant that giggers were entitled to overtime pay, workplace protections, & reimbursement for expenses. The bill was an existential threat to an industry premised on the myth that it comprises not so much companies in the traditional sense but neutral “platforms” that connect sellers of services to customers. AB 5 may have codified labor regulations that make it clear that gig drivers are employees, but the law still had to be enforced.
Tech companies have been contesting the bill on every front, fighting in court to say they shouldn’t have to employ drivers & even putting an initiative on the ballot that would create an AB 5 exemption for ride-hailing companies.
Before the judge’s injunction came down, Uber CEO Dara Khosrowshahi showed up in the pages of the NY Times, arguing that “gig workers deserve better” but not that much better. For him, employment is too far. It would take “flexibility” away from drivers & crack down on an innovative model. A safety net built on years of labor activism tied to employment is presented as just another outmoded thing to be disrupted. Instead, Khosrowshahi offers a “third way.” In his world, there would be bonuses & protections but still no employment.. A “benefit fund,” that drivers could use on health care or paid time off. Just ignore that this falls far short of actual employment benefits..None of this should be mistaken for generosity or noblesse oblige.
Uber had to be dragged here, by its workers, who via the passage of AB 5 & their persistent organizing have finally made gig companies fearful. Just recently drivers showed up outside Khosrowshahi’s home in San Francisco to fight against the measure & call out Uber’s lack of coronavirus safety. Last week, they rallied at Uber & Lyft hubs.
The judge’s injunction was a victory won as much in the streets as in the courtroom. “We demand that Uber & Lyft stop breaking the law,” said Cherri Murphy of Gig Workers Rising, in a statement. “Right now, these billion dollar corporations are denying us the employee status, rights & benefits that we are legally owed.
More, https://www.motherjones.com/politics/2020/08/california-judge-orders-uber-and-lyft-to-convert-their-drivers-into-employees-right-now/
- A driver & passenger wear face masks as Uber & Lyft drivers with Rideshare Drivers United & the Transport Workers Union of America conduct a 'caravan protest' outside the CA Labor Commissioner's office during the coronavirus pandemic, April 16, 2020 in LA. The drivers called for Calif. to enforce the AB 5 law so that they may qualify for unemployment insurance an for receiving back wages they say they are owed.
https://www.commondreams.org/news/2020/08/11/major-milestone-workers-california-judge-rules-uber-and-lyft-must-classify-drivers
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This gig economy is awful! 
