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Uber and Lyft ordered by California judge to classify drivers as employees

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Re: Uber and Lyft ordered by California judge to classify drivers as employees

#101
post #73

Earlier quoted context omitted.

They are both just placeholders until we have robotaxi networks. 5-10 years max.

Do you really believe those aren't decades away for door-to-door?

Waymo started publicly testing level 4 cars last year, and reportedly has 600 cars testing level 5. It isn't decades away anymore.

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#102

Earlier quoted context omitted.

This is an example of regulation getting in the way of innovation... If by innovation you mean the abuse of people forced to work in the "gig" economy, then sure.

Abuse?? Nobody is forced to work anywhere in the U.S. If they can find a better situation they should. Why hurt their situation with regulation?

> Nobody is forced to work anywhere in the U.S.

Starvation and rent suggest otherwise. We're not so sufficiently advanced that anyone can choose not to work and expect meals and a roof over their head.

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#103

If Uber and Lyft are forced to classify drivers as employees, doesn't that mean these companies will try to lock them in? For example Uber won't allow their drivers to work for Lyft, and vice versa. If this is the case, I think Lyft will die very quickly because as far as I know, most drivers prefer Uber over Lyft.

IANAL, but to my knowledge, in California, a company cannot[] legally prevent their employees from working a second job in their spare time, so this kind of lock in would not work.

[] some exceptions apply, mainly related to IP I think.

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#104
post #62

I'm confused how they are violating Assembly Bill 5 (workers can generally only be considered contractors if they perform duties outside the usual course of a company’s business)? Do any employees working at Uber or Lyft currently do any driving? Their business is providing riders with drivers. The driving is not their business.

>Their business is providing riders with drivers. The driving is not their business. Can't you use this excuse to bypass that clause altogether? eg. a pizza restaurant that classifies its delivery drivers as contractors: "their business is making the pizza. delivery is not their business".

I mean it's that how contracting is supposed to work? If your core competency is in making the product expecting you to become experts on delivering it too is crazy.

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#105
post #50

Leave it to California to stick it to a company losing $7 billion per year trying to find its footing. Drivers are voluntarily entering into the current work arrangement. Why does the government need to have an opinion on the matter?

Is it still voluntary if it happens out of economic desperation?

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#106

Earlier quoted context omitted.

Some things, like not being able to set their own rates, meant drivers were never contractors, even if they wanted the perks of contracting (e.g, choose your own hours). Saying 'I wish to be a contractor' isn't legally sufficient: the agreement needs to permit setting rates.

This is certainly the (fairly robust) legal argument. My hesitation is that I think a significant amount of drivers prefer and would benefit from the arrangement that Uber and Lyft have set up, and it's a shame that we aren't discussing how to write legislation to fit those people in. It just feels like forcing everyone to be an employee will box out a large number of happy part-time drivers who weren't too concerned…

The part time drivers aren't the problem, it doesn't cost much to move them into being employees assuming they made above minimum wage to begin with. The problem is with all the people working uber full time and over 40 hours a week. At that point, a lot of things get more expensive like the burden of providing health insurance

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#107
post #13

This is an example of regulation getting in the way of innovation again. It’s like they want the medallion taxi system again.

Regulation, in general, exists primarily as a response to exploitation. If drivers felt they were getting paid equitably, had fair dispute resolution, had access to benefits, etc., there wouldn't be a need for this.

You’re right except exploitation occurs as crony capitalism. “You rub my back, I’ll make your competition run through red tape”.

Nobody is forcing these workers to do ANYTHING.

Regulation would force action.

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#108

I'm confused how they are violating Assembly Bill 5 (workers can generally only be considered contractors if they perform duties outside the usual course of a company’s business)? Do any employees working at Uber or Lyft currently do any driving? Their business is providing riders with drivers. The driving is not their business.

This decision technically doesn't find that Uber/Lyft are violating the statute. The analysis considers: (1) the likelihood that the prevailing party will ultimately prevail on the merits; and (2) the relative interim harm to the parties from the issuance or nonissuane of the injunction.

Here, a Superior Court judge found that the State of California is likely to prevail on the merits in the end. The reason being that Uber/Lyft failed to satisfy the prong "(B) The person performs work that is outside the usual course of the hiring entity’s business." Basically, the judge thought that Uber/Lyft is in the transportation business, not some "multi-sided platforms" as they claim to be.

Can this injunction be overturned by a higher California court? Absolutely. Does it look bad for Uber/Lyft in the court of public opinion? Yup, very much so. That's why three's an Opinion piece in the Times today by the CEO of Uber.[0] He knew this was coming.

[0] https://www.nytimes.com/2020/08/10/opinion/uber-ceo-dara-kho...

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#109

Earlier quoted context omitted.

> Why not? They currently do just that... Right now they do that for contractors. After the drivers are reclassified as employees, things might change.

Things might also stay the same. There's inertia in the current system and the drivers clearly value their flexibility. Why would things change?

Because operating costs increased substantially because of the requirement to provide benefits to workers.

Re: Uber and Lyft ordered by California judge to classify drivers as employees

#110

Earlier quoted context omitted.

Some things, like not being able to set their own rates, meant drivers were never contractors, even if they wanted the perks of contracting (e.g, choose your own hours). Saying 'I wish to be a contractor' isn't legally sufficient: the agreement needs to permit setting rates.

This is certainly the (fairly robust) legal argument. My hesitation is that I think a significant amount of drivers prefer and would benefit from the arrangement that Uber and Lyft have set up, and it's a shame that we aren't discussing how to write legislation to fit those people in. It just feels like forcing everyone to be an employee will box out a large number of happy part-time drivers who weren't too concerned…

I agree. I think the "gig-economy" is clearly a third type of worker - not quite and employee and not quite a contractor. It makes sense to embrace that and make sure everyone benefits the most, instead of shoving this new situation into an old leagl framework that doesn't quite fit.
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