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Title : The end of the beginning of the gig economy? Uber, Lyft and California AB5
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The end of the beginning of the gig economy? Uber, Lyft and California AB5

 The San Francisco Chronicle has the latest news on the most concrete step yet to require Uber and Lyft to shift from a contractor-driver business model to one of driver employees...

Judge says California Uber, Lyft drivers should be employees

by Carolyn Said 

"A San Francisco Superior Court judge on Monday granted California’s request for a preliminary injunction to make the state’s Uber and Lyft drivers into employees. The 34-page order was scathing about the ride-hailing companies’ “prolonged and brazen refusal to comply with California law,” namely AB5, the new gig-work law that makes it harder for companies to claim that workers are independent contractors.

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"However, it is likely to have little immediate impact.

"Judge Ethan Schulman stayed his injunction for 10 days. The companies will appeal it and seek a longer stay before the 10 days are up. An appeals court likely would hear their emergency motion quickly. Uber said it expects to be granted the longer-term delay and does not anticipate any near-term changes to its business. No matter what, it could not hire tens of thousands of drivers in a matter of days, it said.

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"AB5 established an ABC test that says workers are employees unless A) they are free from a hiring entity’s control, B) perform work outside the hiring entity’s usual business, and C) have an independent business doing that kind of work.

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"Along with other gig companies, Uber and Lyft are pursuing a $110 million November ballot measure, Proposition 22, asking California voters to keep drivers as freelancers who are entitled to some earnings guarantees and benefits. DoorDash, Instacart and Postmates, the other Prop. 22 backers, are not named in the California lawsuit but presumably would be affected by whatever precedent it sets. (Uber has purchased Postmates in a deal that will close next year.)"

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