Please ensure Javascript is enabled for purposes of website accessibility

Fresno Leaders Voice ‘Full Support’ for Pismo’s Restaurant Manager in ICE Custody

7 hours ago

Poll: Katie Porter Holds Early Edge in California Governor’s Race

9 hours ago

Just 38% of Americans Support Trump’s Use of Troops to Police DC, Reuters/Ipsos Poll Finds

10 hours ago

Families Leave Gaza City After Night of Bombardment, Israelis Protest

12 hours ago

California Farming Couple Seeks $300 Million for Aspen Estate

13 hours ago

Trump Administration Cannot Sue Maryland Federal Judges Over Immigration Order, Judge Rules

14 hours ago

California Republicans Sue to Block Congressional Redistricting Plan

1 day ago

Trump To Sign Executive Order Directing AG To Prosecute Flag Desecration

1 day ago

Fresno County DUI Crash Sends Car Into Embankment Near Highway 99

2 days ago
Uber Vows to Keep Fighting Sweeping California Labor Bill
gvw_ap_news
By Associated Press
Published 6 years ago on
September 12, 2019

Share

SACRAMENTO — 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.

“Just because the test is hard does not mean we will not be able to pass it.”general counsel Tony West
The measure passed Wednesday and now heads to Democratic Gov. Gavin Newsom. It outlines a three-part test that makes it harder for companies to classify workers as independent contractors who are not entitled to minimum wage and benefits like workers compensation.
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 won’t start treating its workers as employees come Jan. 1, instead defending its model if it faces legal challenges.
“Just because the test is hard does not mean we will not be able to pass it,” 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 haven’t made acceptable proposals.

Uber, Lyft and Delivery Companies Aren’t Ready to Concede

“We’re committed to creating the conditions for (negotiations) to happen,” 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.
“It’s forced the nation to take a look at what the future of work is going to look like,” 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 court’s 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 aren’t ready to concede.
Uber and Lyft have already dumped $60 million into a committee for a ballot measure next year if Newsom doesn’t 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.

Photo of supporters during a rally in Sacramento
In this Aug. 28, 2019, photo, supporters of a measure to limit when companies can label workers as independent contractors drive their cars past the Capitol during a rally in Sacramento, Calif. California lawmakers are debating a bill that would make companies like Uber and Lyft label their workers as employees, entitling them to minimum wage and benefits. (AP Photo/Rich Pedroncelli, File)

A Three-Prong Test to Decide if Workers Can Be Labeled as Contractors

Lyft spokesman Adrian Durbin would not comment on whether Lyft shares Uber’s position that it will not reclassify its workers come Jan. 1.

“This isn’t 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 don’t provide enough for their workers.”Assemblywoman Lorena Gonzalez
“We are fully prepared to take this issue to the voters of California to preserve the freedom and access drivers and riders want and need,” Durbin said in a statement.
The legislation is likely of intense interest to the companies’ investors — 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 “outside the usual course of the hiring entity’s business” and be engaged in an independently established trade, occupation or business of the same nature of the work they are performing.
“This isn’t 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 don’t provide enough for their workers,” said the bill’s 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.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

California Searchers Pull Off High-Altitude Rescue of Missing Hiker

DON'T MISS

Judge Grants Fresno Temporary Win in Federal Grant DEI Dispute

DON'T MISS

Trump Administration Asks US Supreme Court to Halt Foreign Aid Payments

DON'T MISS

Hamas Challenges Israeli Account of Gaza Hospital Casualties

DON'T MISS

Fresno Unified Set to Hire Deputy Superintendent With Impressive Credentials

DON'T MISS

Meta to Launch California Super PAC Backing Pro-AI Candidates

DON'T MISS

Poll: Californians Overwhelmingly Reject Trump’s Immigration Policies

DON'T MISS

Fresno Leaders Voice ‘Full Support’ for Pismo’s Restaurant Manager in ICE Custody

DON'T MISS

Leaked Audio Reveals Ex-Israeli Intelligence Chief Calling Gaza Deaths ‘Necessary’

DON'T MISS

Texas GOP Congressional Candidate Burns Quran With Flamethrower

UP NEXT

Poll: Californians Overwhelmingly Reject Trump’s Immigration Policies

UP NEXT

California High-Speed Rail Project Hit With New $175 Million Cut

UP NEXT

Poll: Katie Porter Holds Early Edge in California Governor’s Race

UP NEXT

ICE Is Suddenly Showing Up in CA Hospitals. Workers Want More Guidance on What to Do

UP NEXT

Coarsegold Elementary Briefly Locked Down After Student Brings Starter Pistol

UP NEXT

California Farming Couple Seeks $300 Million for Aspen Estate

UP NEXT

Trump Media, Crypto.com Announce Deal to Form Crypto Treasury Firm

UP NEXT

Fox Channels May Go Dark on YouTube TV From Wednesday Over Payment Dispute

UP NEXT

California Republicans Sue to Block Congressional Redistricting Plan

UP NEXT

SF Has Avoided Trump’s Ire Until Now. Will He Send National Guard?

Hamas Challenges Israeli Account of Gaza Hospital Casualties

5 hours ago

Fresno Unified Set to Hire Deputy Superintendent With Impressive Credentials

6 hours ago

Meta to Launch California Super PAC Backing Pro-AI Candidates

6 hours ago

Poll: Californians Overwhelmingly Reject Trump’s Immigration Policies

6 hours ago

Fresno Leaders Voice ‘Full Support’ for Pismo’s Restaurant Manager in ICE Custody

7 hours ago

Leaked Audio Reveals Ex-Israeli Intelligence Chief Calling Gaza Deaths ‘Necessary’

7 hours ago

Texas GOP Congressional Candidate Burns Quran With Flamethrower

7 hours ago

Madera County Authorities Arrest Army Sergeant in Child Sexual Abuse Material Investigation

8 hours ago

California High-Speed Rail Project Hit With New $175 Million Cut

8 hours ago

Poll: Katie Porter Holds Early Edge in California Governor’s Race

9 hours ago

California Searchers Pull Off High-Altitude Rescue of Missing Hiker

A hiker missing since Aug. 16 was located and evacuated Tuesday, Aug. 19, during a multi-agency search-and-rescue operation near Cottonwood ...

4 hours ago

On Tuesday, August 19, 2025, a hiker missing since August 16 was safely located and evacuated near Cottonwood Lakes during a multi-agency search and rescue operation. (Kern County SO)
4 hours ago

California Searchers Pull Off High-Altitude Rescue of Missing Hiker

Fresno City Gavel Lawsuit
5 hours ago

Judge Grants Fresno Temporary Win in Federal Grant DEI Dispute

People walk across the plaza of the U.S. Supreme Court building on the first day of the court's new term in Washington, U.S. October 3, 2022. (Reuters File)
5 hours ago

Trump Administration Asks US Supreme Court to Halt Foreign Aid Payments

People walk at the site of Israeli strikes on Nasser hospital where Palestinian cameraman Hussam al-Masri, who was a contractor for Reuters, was killed along with other journalists and people, in Khan Younis in the southern Gaza Strip in this still image taken from video, August 25, 2025. (Reuters File)
5 hours ago

Hamas Challenges Israeli Account of Gaza Hospital Casualties

FUSD Fresno Unified employment agreement Ben Drati
6 hours ago

Fresno Unified Set to Hire Deputy Superintendent With Impressive Credentials

6 hours ago

Meta to Launch California Super PAC Backing Pro-AI Candidates

6 hours ago

Poll: Californians Overwhelmingly Reject Trump’s Immigration Policies

7 hours ago

Fresno Leaders Voice ‘Full Support’ for Pismo’s Restaurant Manager in ICE Custody

Search

Help continue the work that gets you the news that matters most.

Send this to a friend