'Gaming the system' — Uber and Lyft face a driver reckoning in California

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California’s lawmakers took their first major step this week toward settling the debate about whether Uber and Lyft drivers are employees or contractors.

Prior to the bill, gig-economy companies had little to fear. While the 2018 Dynamex ruling assumed workers were employees unless proven otherwise, the “ABC” test has yet to be enforced on Uber and Lyft, according to academics and labor activists who spoke with NBC News., a coalition of unions that has pushed for the new bill. “Employers are not complying with the decision.”

In the year since the Dynamexruling, little action has been taken by government entities to apply the “ABC” test. In May 2018, San Francisco City Attorney Dennis HerreraUber and Lyft for records to determine whether they were in compliance with Dynamex. However, the office has yet to announce the results of that investigation.

“We’ve received some information pursuant to these subpoenas,” John Coté, a spokesman for Herrera, emailed. “We are considering our options going forward.” NBC News sent requests for comment to the city attorneys for Oakland, Los Angeles, Sacramento and Fresno, and none responded. The California Attorney General’s Office referred inquiries to the, which said in a statement that misclassification was a “very serious” and ongoing issue, but would not say whether the agency was targeting Uber or any other gig economy company.

Uber and Lyft face growing unrest from drivers, who claim that their take-home pay has declined in recent years. Lawsuits filed by Uber drivers in recent years have

 

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