Uber says drivers aren't part of its 'usual course' of business

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Uber argues landmark California bill that threatens to upend its business doesn't apply

do business. The legislation, known as Assembly Bill 5 , was passed in the state Assembly and now heads to Democratic California Gov. Gavin Newsom's desk.AB5 would require gig economy workers to be reclassified as employees instead of contractors. The bill passed in the state Assembly in a 61-16 vote, Assemblywoman Lorena Gonzalez , the bill's author, said in a statement. That's after the bill passed in the state Senate on Tuesday.

"Under that three-part test, arguably the highest bar is that a company must prove that contractors are doing work 'outside the usual course' of its business," West said. "...Several previous rulings have found that drivers' work is West said Uber intends to follow AB5 should it be put into law next year, but that it will continue to try to prove that it doesn't fall under its legal framework.

 

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That's the weakest argument ever. If it wasn't for their drivers there wouldn't be revenue. This business model was always broken.

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Uber, Lyft Poised to Lose Fight Against California Bill to Label Drivers EmployeesCalifornia Democrats are poised to pass landmark employment legislation over the objections of ride-sharing giants Uber and Lyft. The bill is likely to upend the business model of companies that rely on gig workers. I think the days of Califnornia making draconian laws becase they have large populations is coming to an end. There are plenty of places outside of CA that are much easier to work in. I’m glad California is standing up for worker’s rights such as minimum wage and workers compensation! This is long overdue! Uber & Lyft make an unfair profit compared to taxis. This is what unions are for..you can’t build a business model on circumventing Labor laws
Source: WSJ - 🏆 98. / 63 Read more »