Uber and Lyft have fought a losing battle in the
Legislature and courts, so now — with help from
app-based food delivery companies DoorDash,
Postmates and Instacart — they are spending
more than $180 million to take their fight
directly to voters in the Nov. 3 election.
Early voting in California starts Monday. Uber
and Lyft, both headquartered in San Francisco,
have said they may leave the state if the
measure fails.
The landmark labor law known known as AB5
threatens to upend the app-based business
model, which offers great flexibility to drivers
who can work whenever they choose. But
they forego protections like minimum wage,
overtime, health insurance and reimbursement
for expenses.
“What’s at stake is the future of labor, the
nature of work, how conditions are changing
for households amidst the pandemic and
recession,” said David McCuan, chair of
California’s Sonoma State University political
science department.
Labor-friendly Democrats in the Legislature
passed the law last year to expand upon a 2018
ruling by the California Supreme Court that
limited businesses from classifying workers as
independent contractors.
Uber and Lyft have maintained that their drivers
meet the criteria to be independent contractors,
not employees. They also have argued the
law didn’t apply to them because they are
technology companies, not transportation
companies, and drivers are not a core part of
their business.