Uber, Lyft spend big in California to oppose even costlier gig worker law

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Uber and Lyft together are spending nearly $100,000,000 on a November California ballot initiative to overturn a state law that would compel them to classify drivers as employees.

The tussle over classification of workers highlights the political and business risks facing companies that have built businesses on workers who are not classified as employees.

The two ride-hailing companies would each face more than $392 million in annual payroll taxes and workers’ compensation costs even if they drastically cut the number of drivers on their platforms, a Reuters calculation showed. A “yes” vote on California’s Proposition 22 gives Uber and Lyft what they seek, which is to overturn the state’s gig worker law, known as AB5, which took effect in January. Uber and Lyft have insisted the law does not apply to them, sparking a legal battle.

U.S. Democratic presidential candidate Joe Biden and his running mate, Senator Kamala Harris, have both voiced their strong support for California’s labor law and directly called on voters to reject the companies’ ballot proposal that would weaken it. Lyft, which operates only in the United States and does not have a food delivery business, in August said California makes up some 16% of the company’s total rides. Lyft does not break out ride-hailing revenue, but California contributed $576 million as a share of total 2019 revenue.California sued Uber and Lyft in May for not complying with AB5. The ride-hailing companies said their workers are properly classified as independent contractors, because they can set their own schedules.

 

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Heaven forbid we allow a private party from giving money to another private party to perform a service, without the government getting in between them.

WHERE'S THE FUCKING MONEY COMING FROM, THEY BOTH LOSE HUNDREDS OF MILLIONS A YEAR!!!

Good it’s a bad bill impacting multiple industries.

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BECAUSE THEY WANT TO CHEAP ON STATE TAXES?

That's far less than they would spend if they just paid their fucking drivers a livable wage.

As a Uber driver we don’t want to be classified as employees

Great!!!👎👎👎

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Uber, Lyft spend big in California to oppose even costlier gig worker lawUber Technologies Inc and Lyft Inc together are spending nearly $100 million on a November California ballot initiative to overturn a state law that would compel them to classify drivers as employees. nothing like spending your money on lawyers fighting against workers making a living wage when you could have just paid your workers in the first place. Democrat leadership in California, tax and spend. All else be damned.
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