Tag Archives: uber

California Bill AB5 Turns Contract Workers into Employees



California’s Assembly Bill 5 (AB5) will reclassify many contract workers in California into full employees with benefits. It doesn’t cover all types of contract workers, and is anticipated to affect companies like Uber and Lyft the most.

The New York Times reported that AB5 passed the California State Senate in a 29 to 11 vote. California’s Governor, Gavin Newsom, endorsed the bill this month and is expected to sign it. If signed, the measure will go into effect on January 1, 2020. State Senator Maria Elena Durazo (Democrat – Los Angeles) authored the bill.

The bill redefines “employee” using an existing law that includes an “ABC” test to establish whether a worker is an independent contractor or an employee. It says a worker is an employee if the worker’s tasks are performed under a company’s control; those tasks are central to that company’s business; and the worker does not have an independent enterprise in that trade.

Those who are considered employees under this bill will have access to basic protections such as a minimum wage, unemployment insurance, and perhaps access to health insurance coverage.

Personally, I am an independent contract worker – not an employee. None of the work I do for a living could be considered “central to that company’s business”. That said, people who are part of the gig economy and who drive for companies who produce ride-hailing apps, could be considered employees. They are doing the work that is central to the the business of Uber, Lyft, and DoorDash.

According to The New York Times, Uber and Lyft have “repeatedly warned that they will have to start scheduling drivers in advance if they are employees, reducing drivers’ ability to work when and where they want”. But, this is nonsense. There is absolutely nothing in AB5 that requires companies to “schedule drivers in advance”. It is possible that Uber and/or Lyft will retaliate by raising the prices for rides – but this will ultimately backfire because public transit is always going to be less expensive.

There are lists of professions who are exempt from AB5. Those professions include: doctors, dentists, psychologists, insurance agents, stockbrokers, lawyers, accountants, engineers, direct sellers, real estate agents, hairstylists, commercial fisherman, travel agents, and graphic designers.


Uber Settles Discrimination Lawsuit



uberlogo[1]Ride-sharing service Uber agreed to settle a lawsuit brought against them by the National Federation of the Blind. The suit contended that Uber was engaging in discriminatory practices by refusing to pick up blind passengers with service dogs. The settlement is still being reviewed by a judge and pending approval. The terms of the settlement force Uber to notify all of its drivers that they must take all passengers with service animals. The suit also awards $225,000 to the National Federation of the Blind over three years.

From a statement released by Uber:

As part of this settlement, we have agreed to take steps to make clear to drivers using Uber that they are obligated to transport to any passenger with a service animal. If the settlement is approved, drivers will see a pop-up in the Uber app reminding them of this obligation. We will also send periodic email reminders to drivers.

We have also agreed to publish a service animal policy which, in addition to our code of conduct and new deactivation policy, makes clear that any driver found to have refused someone with a service animal will be barred from using the Uber platform.

The National Federation of the Blind will deploy blind passengers with service animals to help test the new measures put in place by the settlement.


Uber – Google Driverless Cars: The End of Drivers?



uberlogo[1]When I went to L.A. in July, I used Uber to travel back to the Airport. Of course, that was during rush hour, which is not a smart move. But the driver – an L.A. native – knew the shortcuts to get me from Venice Beach to LAX in a faster time.

So how would a driverless car do it?

Local independent transportation company Uber announced today they want to invest up to $375 million for 2,500 driverless cars from Google when they become available toward the end of the year. Their investment also included a commitment to share data with Google for the trips.

Google – who has been developing driverless cars since 2008 – just showed the GX3200 earlier this year at the Detroit Auto Show. The GX3200 is a four-person, 3 suitcase car with built-in Wifi and a charge that can get up to 750 miles.

For Uber, this could mean faster rollouts in cities they never planned to be a part of. Having 1-2 cars in towns with populations less than 10,000 is a reality. You don’t even a dispatcher living there, since the app takes care of the process.

Uber is in 24 cities in the U.S. – Just adding Honolulu last week – and 18 worldwide locations. Of course, major hurdles in some areas as labor unions petition this service and new regulations trying to shut down the Uber Taxi service.

Still, the question begs – do you want a driverless car? I would be more happy to have a car show up for me to get in and drive to my desired location. Having some control at this stage in the autonomous car period will make me feel safer.

With newer Google Maps – including the recently purchased and implemented Waze software (predictive software that finds alternate routes) – I could see a driverless car act just like my Uber driver from July.

Would you get into a driverless car?