A judge issued a publication ban and told Uber UBER and Lyft LYFT to treat their California drivers as employees. This is a far-reaching court injunction for both companies to consider all their drivers as employees. Companies will appeal, of course, but this is a big win for California`s law, Assembly Bill 5. Billions of euros are at stake in taxes, penalties and refunds, and not just for a small number of companies. Uber and Lyft opposed the new law even before it passed in September 2019, vowing not to treat drivers as employees, despite the new law. They claim that they do not offer travel, but technological platforms. Why is the type of business important? In the case of AB5, California workers can only be independent contractors if the work they perform is outside of a company`s usual activity. Conversely, workers must be employees and not contractors when an undertaking exercises control over the way in which they perform their tasks or where their work is part of the normal activity of an undertaking. These and other companies say they are tech companies, not ride operators. California hopes to prevent what it calls a “parasite” from passing on its own business costs to taxpayers and workers. Workers are responsible for federal and national deduction, anti-discrimination, health care, pensions, workers` compensation and unemployment insurance obligations. You avoid these entanglements by hiring independent contractors, don`t you?  As Uber CEO Dara Khosrowshahi explained in her letter to investors, the company began providing travel. Subsequently, it expanded to other services such as carpooling and carpooling, food delivery, electric scooters and bicycles, driverless cars and helicopter rides.
See investor.uber.com/a-letter-from-our-ceo/default.aspx). Ride-sharing drivers demonstrate against carpoolers Uber and Lyft at a motorhome protest. [+] August 6, 2020 in Los Angeles. Drivers organized by the Mobile Workers Alliance and Rideshare Drivers United say Uber and Lyft are advancing a November “fraudulent” election initiative, which they say if passed, they would “rewrite labor law” and turn app-based drivers into independent contractors, which would exempt companies like Lyft and Uber from pay restrictions and standard hours.