Share
SACRAMENTO โ California lawmakers confronting the changing definition of work have approved sweeping legislation designed to give many contract workers new pay and benefit protections, but tech giants Uber and Lyft vowed to keep fighting the changes, possibly by bankrolling an expensive fight on the 2020 ballot.
Uber has argued that forcing its drivers to become employees would upend a business model that is built on flexibility. General counsel Tony West suggested to reporters that the ride-hailing company wonโt start treating its workers as employees come Jan. 1, instead defending its model if it faces legal challenges.
โJust because the test is hard does not mean we will not be able to pass it,โ he said.
Newsom has pledged to sign the measure, but his office hopes to bring ride-hailing and meal delivery companies to the table with labor unions to negotiate a separate set of rules for workers who pick up jobs on their own schedules in the so-called gig economy.
The freshman governor faces a test of his ability to broker a compromise between powerful interest groups in Silicon Valley and organized labor. Steve Smith of the California Labor Federation, a sponsor of the legislation, said the companies so far havenโt made acceptable proposals.
Uber, Lyft and Delivery Companies Arenโt Ready to Concede
โWeโre committed to creating the conditions for (negotiations) to happen,โ Newsom spokesman Nathan Click said.
If Newsom signs the legislation, it could have national implications as politicians and businesses confront the shifting nature of work.
New York Gov. Andrew Cuomo, a Democrat, has indicated interest in pursuing a similar measure, and almost all the Democratic presidential contenders have offered similar proposals at the federal level.
โItโs forced the nation to take a look at what the future of work is going to look like,โ Democratic Assemblyman Ian Calderon of Whittier said in supporting the bill.
The measure would enshrine in law a 2018 California Supreme Court decision that makes it harder for companies to classify workers as independent contractors instead of employees. While the courtโs decision has set legal precedent since last year, the legislation provides enforcement tactics to the state and to city attorneys, who could sue companies they believe are failing to comply.
But Uber, Lyft and delivery companies such as DoorDash and Postmates arenโt ready to concede.
Uber and Lyft have already dumped $60 million into a committee for a ballot measure next year if Newsom doesnโt broker a deal. They have said the ballot measure would set a base hourly wage, give workers access to benefits they can take with them to other companies and allow drivers to collectively bargain without making them employees.
DoorDash, the meal delivery company, also has pledged $30 million.

A Three-Prong Test to Decide if Workers Can Be Labeled as Contractors
Lyft spokesman Adrian Durbin would not comment on whether Lyft shares Uberโs position that it will not reclassify its workers come Jan. 1.
The legislation is likely of intense interest to the companiesโ investors โ both Uber and Lyft are publicly traded. Wedbush analyst Daniel Ives wrote in a note to investors that the firm expects gig economy companies to push back and find middle ground.
The measure lays out a three-prong test to decide if workers can be labeled as contractors: The worker must be free from control of the company, perform work โoutside the usual course of the hiring entityโs businessโ and be engaged in an independently established trade, occupation or business of the same nature of the work they are performing.
โThis isnโt perfect, but I think this goes a long way to protecting workers, legitimate small businesses, legitimate businesses that play by the rules, and we, as taxpayers, that have to clean up the mess when these businesses donโt provide enough for their workers,โ said the billโs author, Democratic Assemblywoman Lorena Gonzalez, her voice shaking with emotion.
Her legislation had been the target of intense lobbying efforts, not just from gig economy companies. Because it would affect all job sectors, many have successfully pushed for exemptions.
Jobs excluded from the new test include doctors and dentists; licensed lawyers, architects, engineers and accountants; commercial fishermen; travel agents, marketing consultants, graphic designers, grant writers and others.
Critics say by writing so many exceptions, the Legislature is unfairly picking winners and losers.
Fresno County Hit-and-Run Leaves Pedestrian Dead
55 minutes ago
Trump Is Expected to Sign Executive Orders to Boost Coal, a Reliable but Polluting Energy Source
1 hour ago
An Explosive Clock Is Ticking on Iran and Its Nuclear Program
1 hour ago
Dow Jumps 1,100 to Recover a Bit of Its Steep Losses as Some Relief Washes Through
1 hour ago
This Is Who Trump Has Targeted for Retribution
17 hours ago
Fresno County Hit-and-Run Leaves Pedestrian Dead
55 minutes ago
Trump Is Expected to Sign Executive Orders to Boost Coal, a Reliable but Polluting Energy Source
1 hour ago
An Explosive Clock Is Ticking on Iran and Its Nuclear Program
1 hour ago
Dow Jumps 1,100 to Recover a Bit of Its Steep Losses as Some Relief Washes Through
1 hour ago
This Is Who Trump Has Targeted for Retribution
17 hours ago
These Jackets Are Fire
3 minutes ago
Categories

These Jackets Are Fire

Foreign Tourists Cancel US Trips Amid Trump Rhetoric, Tariffs and Border Concerns

Fresno County Hit-and-Run Leaves Pedestrian Dead

Trump Is Expected to Sign Executive Orders to Boost Coal, a Reliable but Polluting Energy Source

An Explosive Clock Is Ticking on Iran and Its Nuclear Program

Dow Jumps 1,100 to Recover a Bit of Its Steep Losses as Some Relief Washes Through
