Does California Labor Law Apply to App Drivers or Not?

Last year, California approved the strictest labor law in the country regarding when workers can be classified as independent contractors. Lawmakers intended to push businesses to add more freelancers and independent contractors to their payroll so they would have access to employee protections, benefits, minimum wage, etc. While the new law was praised by labor groups, it set off a string of lawsuits filed by drivers, independent contractors and freelance writers who claimed the new law left them out of work. 

Gig Economy Titans Mount Massive Resistance to New Law: 

In response to the new law, titans in the gig industry like Uber and Lyft have mounted massive resistance. Uber, Lyft, and DoorDash are backing a ballot initiative set to go before voters in November. It’s a multimillion-dollar shot attempting to exclude the companies from the new law, so they won’t be required to give more benefits and wage protections to drivers/contractors. The three gig economy giants all committed to spend at least $30 million to promote the measure – hoping they can get California voters to exempt app-based drivers from the restrictions of the new law. It’s one of California’s most expensive ballot fights. The measure became eligible for the ballot after 623,000 signatures were collected. It’s possible that a success in California could serve as a national precedent. 

Gig Economy Giants Proposing a New Law: 

The massive gig economy giants want the keep the power to hire workers as independent contractors, and they’re proposing a new law that would give drivers who work more than 25 hours a week health coverage and benefits if they are injured while they’re on the job. Based on the new law included in the ballot measure, drivers would be able to work across any app and earn a base of 120% of the minimum wage (and more based on how many miles they drive).  

California Sued Uber and Lyft for Allegedly Misclassifying Drivers

At the beginning of May 2020, the state of California sued Uber and Lyft for allegedly misclassifying drivers as contractors. The Protect App-Based Drivers & Services coalition leading the ballot initiative claims to represent 60,000 drivers and claims that the lawsuit would lead to unnecessary job losses during the Covid-19 pandemic-induced recession. 

If you need to discuss misclassification or if you need to file a misclassification lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.