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Uber, Lyft Say $90M Effort to Overturn Labor Law Will Benefit Drivers. Economists Disagree.



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The battle over the future of the gig economy could end up being one of the most expensive proposition fights in California’s history, and the outcome likely will have ramifications beyond the state’s border.
Drivers and app-based workers are divided over a plan paid for by tech titans to challenge Assembly Bill 5, the landmark labor legislation that could require companies — including Uber and Lyft — to bring independent contractors on board as employees.
The two companies have already put up a combined total of $60 million to fund a ballot measure. App-based food delivery company DoorDash signed on with an additional $30 million, for $90 million total. The California Labor Federation, an organization that represents 1,200 unions, is preparing to go head-to-head with the companies promising a “vigorous worker-led campaign to defeat this measure,” which will be put to California voters on the November 2020 ballot if supporters can collect the necessary 660,000 signatures.

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