Uber resists California law requiring drivers to be registered as employees

by Kelvin

California Senators approved this week the AB5, a bill that aims to regulate the activity of workers of the so-called gig economy. With approval, per-app transportation platforms will have to register drivers as employees. But Uber Already warned: will not follow the new legislation, at least not immediately.

Uber app


The newly passed law is effective January 1, 2020. At first glance, it determines that when treated as employees, drivers of services such as Uber and Lyft will have to receive a salary that is at least compatible with the minimum. established by California, plus overtime and other benefits.

But Uber says it's not like that. Tony West, the company's chief legal officer, explains that AB5 does not automatically classify application drivers as employees, but that it subjects the company involved to a test to determine whether its people are self-employed or employees.

That's what experts call the "ABC test." The company has to prove that: (A) does not directly control the work of the contractor; (B) that the worker does not perform a function related to the main activities of the business; (C) that the worker exercises his occupation independently.

In other words, the company needs to make it clear that the worker is self-employed and self-employed. Consequently, what Uber and other companies need to do is pass the test.

West stated that Uber can meet all criteria. On the other hand, the risk of the company failing the test is high, mainly because the interpretation of point B is complex, after all, transporting people is a critical activity. Uber even argues that drivers are not essential to their business, but this is a difficult position to substantiate.


The issue is controversial even among drivers. On the one hand, there are those who want the recognition of a bond with the company so that compensation and benefits come to meet minimum parameters.

On the other, there are those who fear that employee classification will force companies to adopt stricter restrictions, such as setting maximum working hours and prohibiting drivers from working on multiple platforms.

Prior to AB5 approval, Uber proposed to California to set a minimum wage of $ 21 per hour of travel, paid time off and work accident compensation, but was unsuccessful.

As a result, the company has teamed up with Lyft and other companies in a campaign to pass specific transport application legislation by 2020 that is not as comprehensive as the AB5 project. Presumably this is a soap opera that will still have many chapters.

With information: The Verge, Los Angeles Times.

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