Tue. Sep 17th, 2019

California passes a law that forces Uber to hire its drivers



The State Assembly of California (USA) voted on Wednesday in favor of forcing Uber, Lyft and other companies of the so-called collaborative economy to formally hire their drivers, something that already has the support of the state Senate and will happen to be law when signed by the governor.

With 56 votes in favor and 15 against, the Assembly, dominated by the Democratic Party, like all state institutions in California, positioned itself in favor of the baptized as proposal AB5, which was also validated on Tuesday by the Senate and which counts with the public support of the governor, Gavin Newsom.

At present, the companies of the so-called collaborative economy such as Uber and Lyft classify those who work for them as independent contractors, which allows them not to have to pay them a fixed salary or offer them the benefits that would correspond if they were contract employees, like medical insurance and holidays or sick days.

The text approved by the two chambers of the state legislature and that will enter into force on January 1, 2020 introduces legal changes that make it very difficult for these companies to continue considering those who work for them independent contractors and in many cases will be forced to hire them .

Before the vote took place in the Assembly, Newsom granted an interview to The Wall Street Journal on Wednesday, in which he said he has open negotiations with Uber, Lyft and other companies, although he has publicly announced that he will sign the law when I arrived at his office.

"Regarding Uber, Lyft, DoorDash and other platforms, we keep the negotiations open, and no matter what happens with (the bill) AB5, I commit to at least continue negotiating," said the Democratic governor. .

For their part, Uber, Lyft and the delivery company DoorDash have already announced that they will dedicate up to 90 million dollars between the three to promote that the final decision on this law falls to California voters through a referendum next year if they fail before some amendments in the text.

"The political leadership of our state has lost an important opportunity to give its support to the vast majority of drivers of transport companies on demand who want a sensible solution that takes into account both labor flexibility and salary and benefits," Lyft said in a statement.

It is estimated that about one million people work as independent contractors in the collaborative economy sector in California, the most populous state in the country and where Uber, Lyft and most of these companies are based.

Despite being only a state bill, several Democratic candidates for the Presidency of more progressive profile such as Bernie Sanders, Elizabeth Warren and Kamala Harris have publicly shown their support for the measure, given the symbolism of it.

. (tagsToTranslate) California (t) approves (t) Uber (t) hire (t) drivers



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