Ride-hailing service Uber submitted a claim Monday versus the state of California, declaring that a landmark gig employee law, set to enter into result Wednesday, is unconstitutional. The suit looks for to obstruct AB 5, which has the possible to overthrow gig economy business such as Uber and Lyft.
The grievance, which likewise notes Postmates as a complainant, argues that the law unjustly targets employees and business in the on-demand economy, treating them in a different way than their standard equivalents and threatening their versatility.
In September,to pass a law focused on securing gig employee rights, which requires Uber, Lyft, DoorDash, Postmates and other gig economy business to reclassify their employees as workers. Currently, these employees are categorized as independent professionals, which enables the business to move expenses onto them.
The suit states the law arbitrarily excuses lots of professions, consisting of direct salesmen, travel representatives, grant authors, business anglers and building truck motorists.
“There is no rhyme or reason to these nonsensical exemptions, and some are so ill-defined or entirely undefined that it is impossible to discern what they include or exclude,” states the grievance (see listed below), which was submitted in a Los Angeles federal court.
Gig workers typically don’t get benefits like health insurance, paid sick days and overtime. In addition, Uber and Lyft drivers have to pay for their own cars, gas, vehicle maintenance and insurance. Many drivers say this system has led to exploitation.
Uber and Lyft have both said their businesses could be broken if they’re required to reclassify their drivers as employees. The two companies have spent $30 million each to sponsor a ballot initiative for November 2020 that could exempt them from the law.
Monday’s lawsuit asks the court to block AB 5 from going into effect on Wednesday, alleging that it’s unenforceable because it violates equal protection clauses in the US and California constitutions in treating network and non-network companies differently.
Under the law, all companies using independent contractors in the state will be put to a three-part test that looks at how much control the company has over its workers, such as whether it has workers wear uniforms, use its equipment and follow its business mandates.
Lyft has said AB 5 doesn’t automatically reclassify drivers as employees, while Uber told CNET that it has “no plans to re-classify our drivers or change our business model.”
The California Attorney General’s Office couldn’t immediately be reached for comment.
CNET’s Dara Kerr contributed to this report.
Postmates and Uber v State of California by jonathan_skillings on Scribd