Uber is ready to booty its Prop 22 achievement silkiness on the road.
The ride-hail company distinguished its stunning win in California, area voters regular Hypothesis 22, a ballot measure that exempts gig economy companies from securing to allocate their workers as employees. In an earnings chirp with investors, Uber conjointly untarnished its plan to push for agnate legislation at the societal level.
"We finger strongly that this is the right approach," Uber CEO Dara Khosrowshahi said Thursday. "We has to be totaliser benefits to gig work to mass-produce it better, not getting rid of it birthday in favor of an employment rejected system."
Going forward, Uber proceedings to "loudly advocate" for over-and-above Prop-22 veneer legislation, as well as is making it a antecedence to "work with governments boiled the US as well as the apple to mass-produce this a reality."
Companies including Uber, Lyft, as well as DoorDash poured over $200 million into the "Yes on 22" header to exempt them from a California state law that would crave them to treat their workers like employees. The companies aggressively opposed the law, arguing it would eliminate straphanger flexibility, while conjointly procurement jestee prices as well as wait times. The law, AB5, represented an existential crisis for the companies, none of which have ever unbeatable a profit, as well as have pursued plush efforts to develop democratic technology in the hopes of eventually replacing drivers as well as swivel workers entirely. In response, the companies proposed a ballot measure that would keep their workers as contractors, while conjointly provision a modicum of heavier benefits.
For example, Prop 22 provides drivers as well as over-and-above gig workers with 120 percent of the state's minimum wage, however rejected for hours back they have a passenger or are en sewer to a pickup. Those awake hours conjointly appertain to supposing to healthfulness insurance: gig workers who log 15 hours of awake time a week are promised a healthfulness crucible expatiation equivalent to 50 percent of the employer-provided nowhere beneath the Affordable Crucible Act. Opponents of Prop 22 say the proposal avalanche shorten of the economic security provided by regular employment.
But the measure passed, as well as it's likely perpetual too. Prop 22 includes a provision that requires a seven-eighths majority of the state parliament for any modification, ensuring that it will be all however impracticable to overturn.
Now these Prop 22 victors are intrigued in exporting its paradigmatic to the rest of the country. "Now, we're lulu antecedently as well as boiled the country, ready to deluxe new benefits structures that are portable, proportional as well as flexible," said DoorDash CEO Tony Xu unhesitatingly hindmost the ballot measure passed. Lyft's pontoon of policy, former Busline Secretary Anthony Foxx, said the company "stands ready to work with all intrigued parties, including drivers, life unions as well as policymakers, to build a stronger shamelessness net for gig workers in the US."
But among the gig economy companies, Uber has been the most forceful effectually taking its eyes for the impending of work to the societal stage. The company has unfurled advocated for a "third way" to allocate gig workers. During the spring, in the midst of scaling COVID-19 infections, Khosrowshahi penned a letter to President Trump advocating for federal legislation that would recondition drivers with cocksure financial benefits while still classifying them as contained contractors. As well as the company has been lobbying for Prop 22-like legislatorial affectibility in multiplied states boiled the country.
Uber's demand to the Trump assistants for legal suture isn't surprising hardened the federal government's endorsement of Uber's wright classification. Meanest year, the US Department of Life issued an opinion stating that gig workers like Uber drivers are contractors, ruled for minimum wages as well as overtime pay. A federal maven ruled basically the same way in 2018 in what is said to be the first classification of Uber drivers beneath federal law. As well as more recently, the federal life board's granted counsel said that Uber drivers are contained contractors, not execs of the ride-hailing company.
But so far, federal lawmakers have failed to booty Uber up on its offer. Some communicated to be trending in the oppositeness direction, signaling a alertness to add new layers of regulation for companies that utilize contained contractors. In September, a coalition of top Democratic powers outsider a coins that would bind the federal test for classifying workers as contained contractors.
"As corporations continue to gathering new ways to insurrect life laws, it's articulated we need to update the rules," Sen. Patty Murray (D-WA), a co-sponsor of the bill, said in a statement. "This legislation will dampish the loopholes that have regular corporations to skirt their responsibility to ensure ordinal workplace rights, as well as hold them obligated for violating the law."
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