Uber, Postmates Sue The State Of California Over Controversial AB-5 Law
Uber and Postmates are suing the state of California over its controversial law that requires the classification of its “gig workers” as employees instead.
According to the filing, on Monday, 30th December 2019 in the Federal Court in Los Angeles, the AB-5 statute violates several parts of both the US and California constitutions.
The lawsuit claims:
“AB-5 is a vague and incoherent statute that does not accomplish what its sponsors have stated they sought to achieve.”
The companies are co-plaintiffs with two drivers who use their apps, Lydia Olson and Miguel Perez, in suing the state.
AB-5, set to go into effect on 1 January 2019, requires businesses to treat workers as employees and not contractors. This is if they perform work that is part of the firm’s usual course of business. The law allegedly targets companies such as Uber, Postmates, Lyft or DoorDash from using as many workers in the future.
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Those in favour of the law say the bill protects workers. Also, making them eligible for benefits such as minimum wage, paid sick days and health insurance benefits.
California Governor Gavin Newsom had said in a statement after signing the bill into law:
“The hollowing out of our middle-class has been 40 years in the making, and the need to create lasting economic security for our workforce demands action.”
Postmates says it’s not trying to avoid the law
Postmates says it is not trying to be exempt from the law to or to avoid established rules for determining who an employee or who an independent contractor is.
The company in a statement says it’s instead calling for the two sides to find a solution to protect workers.
“California has failed to heed calls nor answer the big questions about the future of work and workers in a changing economy,” it said.
It further added:
“Now is not the time to give up or stop talking. Californians deserve a thoughtful, collaborative process to address the 21st-century workforce. Not another false choice.”
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