California is suing Uber and Lyft: why should it please the drivers in these companies

The state of California have sued Uber and Lyft, which provide services of online taxi, reports the LA Times.

Калифорния судится с Uber и Lyft: почему это должно радовать водителей в этих компаниях

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The attorney General of California Javier Besser and a group of the city attorney filed a lawsuit against services taxi service Uber Technologies and Lyft. The petition States that the services employ hundreds of thousands of workers in California direct violation of the law.Since the beginning of the year, California has enacted a law, AB 5, indicating conditions of employment an independent contractor within the economy of the free earnings (the gig economy). For example, independent contractors cannot perform work connected with the main field of activity of the company.The law also ordered the company to pay a guaranteed minimum wage, overtime, to provide medical insurance and other social benefits to people who can be classified as employees.The state government felt that the drivers Uber and Lyft – not independent contractors, and employees owed them a guaranteed minimum salary, compensation for overtime and benefits.In a lawsuit filed in state Supreme court San Francisco, says that Uber and Lyft had an illegal advantage in the market, evading the payment of official salaries, and related taxes in the budget.”Uber and Lyft are transportation companies in the sale to customers of transport services and their drivers are employees, who provide paid transportation,” reads the lawsuit.If the violation of law is proven in court – the plaintiffs will be entitled to recover from the defendants up to $2 500 fine for the violation of the rights of drivers.At the press conference, California attorney General Javier Beccera said that the coronavirus outbreak has exposed serious problems in the field.”The drivers Uber and Lyft who have contracted the coronavirus, and lost his job, quickly realized what they’re missing”. In his statement stated that the situation of the pandemic in the state increased unemployment. Because of this, “the vulnerability of drivers Uber and Lyft has become more evident than ever.” The document explained that companies refuse to cover partially expenses for payment of unemployment benefits to the drivers. These costs are borne by California authorities.Giants of the market of services of private taxis, Uber and Lyft , which have to report their financial results for last quarter this week, are against the adopted law.A representative for Uber said the company “will contest this lawsuit in court,” as well as “enhance the standards of independent work of drivers in California, including the guarantee of minimum wages.”In Lyft said that the company will “work with the attorney General and the mayors of the state” in the interests of workers, “especially in a time when creating jobs with access to health services and other social guarantees important than ever.”Drivers and activists spoke in support of the claim and demand that the government comply with the law AB 5.”Billionaires like to choose what laws they comply with,” said Carlos Ramos, the driver and an activist of the Gig Workers Rising. “Today, California shows that no one is above the Law, even the tech giants”.Uber and Lyft already many years fighting claims that they wrongly klassificeret their drivers, thereby evading the payment of taxes and creating unhealthy competition in the market.From February 2020, more than 2,000 of passenger carriers in California have sued Uber and Lyft, arguing that they need them more than $ 630 million in compensation, salary, expenses and losses.In March the Federal court in San Francisco has already granted the petition for Lyft drivers to recognize their own employees according to the law AB 5.”It’s obvious,” replied district judge for the Northern district of California Vince Chhabria to the question of whether the law to drivers of taxi services. He said that the law was created in order to guarantee the rights of drivers of Lyft and Uber. And what is happening now can be called nothing else than “the obvious disregard for the rule of law.”However, Chhabria rejected the proposal to immediately recognize drivers employees to receive guaranteed benefit at the time of quarantine from the government. The district judge explained his decision by the fact that a court case was opened in a hurry and literally “crawling with bugs”.Representatives of the companies Uber and Lyft contend that they are not the direct employers and act as intermediaries between drivers and passengers.In 2019, the company launched a massive fight against the adoption and implementation of the bill AB 5.So, two days before the law came into force, Uber and delivery service Postmates has filed a lawsuit that AB 5 violates the constitutional rights of people unjustly discriminare online platform and those who are with them for a living.Together with other companies Uber and Lyft have invested $ 10 million on the ballot in California that could serve as an alternative to the bill AB 5.It is proposed to register an additional category of people – something between regular employees and contractors.On may 5 attorney of Los Angeles Mike Foyer said that the upcoming election campaign will not affect the judicial process. If corporations still be able to block AB 5, the state will operate a business Dynamex Operations West against the Supreme court from 2018. Then approved the format of the stringent checks which will determine whether a person is a salaried employee of the company.Companies that provide transportation services – not the only one who opposes this law in California.So, the print edition require that the newsboys were excluded from the category of people to which to apply the new law.Governor of California Gavin Newsom has already announced the intention to request from the state additional tools to enforce the law, AB 5.As previously wrote ForumDaily:

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