AB5 Needs Enforcement Now More than Ever
AB5 Needs Enforcement Now More than Ever
Uber and Lyft drivers are pressing for enforcement of AB5, California’s so-called “Uber Bill” which went into effect on January 1, 2020. In fact, many are thumbing their nose at the current “shelter in place” order to protest outside of Uber’s headquarters on Market Street in San Francisco. Their request: benefits, including the minimum three days of paid sick leave, and disability and unemployment insurance, all as required under state law. The protestors are essentially calling upon the government to actually enforce AB5, which, among other things, requires many businesses, including rideshare companies, to reclassify their drivers from independent contractors to full-time W2 employees with benefits. When workers are classified as independent contractors, their employers are not required to provide them with certain minimum benefits and protections, including the minimum wage or unemployment insurance. Intentionally misclassifying workers is common practice for Uber, Lyft, Postmates, Doordash, and other similarly situated businesses, as they have come to rely upon this practice for a long time to skirt requisite payroll taxes and boost their profitability.While rideshare demand has drastically curtailed since the onset of the novel coronavirus, many drivers simply cannot afford to stay home. They are, instead, risking their and their families’ health while continuing to provide services during the pandemic. The choice that these workers have been required to make is unfair, cruel, and illegal. It flat out violates AB5, which prohibits the classification of workers as independent contractors unless the services being provided are separate and distinct from the applicable company’s primary business. For instance, if a law firm engages the services of a painter to re-paint its offices’ walls, an independent contractor classification would be appropriate, as painting is clearly not within the law firm’s core business. Conversely, if a worker is providing driving services for a transportation company, an independent contractor classification would not be appropriate, as the individual is most definitely providing services that are within the company’s core business.[caption id="attachment_53207" align="alignright" width="200"]
Empty city street; image by Alec Favale, via Unsplash.com.[/caption]Rideshare companies, amongst other businesses, however, are ignoring the new statute, denying worker’s their rightful benefits, and endangering the health of our citizens in the process. Their specious argument is that they are “technology” companies, and driving is not core to their tech business. Since the passage of AB5, the companies have pooled a total of $110 million dollars to get a proposition on the ballot that would provide benefits to drivers without having to classify them as either employees or independent contractors. One such suggested benefit would be a meager $5.64/hour wage guarantee. Another is a limited healthcare stipend, available only to a select few. In response to this, RideShare Drivers United was organized by the same group of workers that pushed AB5 through in the first place. Their current requests include:
An expedited process for immediate access & pay out of unemployment insurance
Rapid prosecution of wage claims for unpaid wages and expenses on behalf of all misclassified workers
Immediate enforcement of paid sick leave requirements
A temporary basic income for all independent contractors and misclassified workers who have little to no work during this pandemic
The extension of paid sick leave to at least 4 weeks
A statewide eviction moratorium until the end of the crisis
Immediately withdraw the ballot initiative to create a gig worker carveout to AB5
Reallocate the $110 million dollars for the AB5 referendum to create an emergency driver relief fund
Cease all appeals for driver unemployment insurance claims
Follow all California employment laws now
Quickly process and pay wages of workers who have filed with the Labor Commissioner
About Jennifer Paley
Jennifer Paley is an attorney and legal writer based in Los Angeles, California who specializes in digital content, technology transactions, entertainment, e-commerce, and advertising. She is a graduate of Harvard College and New York University School of Law. In her free time, Jennifer enjoys hot yoga, hiking, volunteering (primarily with addicted teens in recovery), and travel. She was born and raised in New York. You can visit her websites at: https://www.paleylegal.com/about and https://jenniferpaleylegalwriting.blogspot.com/.