Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

The evolving gig economy and the battles between companies and workers

The evolving gig economy and the battles between companies and workers

A victory by gig-economy companies in California to keep classifying their workers as contractors has given the industry a playbook to face rising labor movements nationwide. The efforts to force the companies to treat their workers like full-time employees could annihilate their business models.

Gig companies like Uber, Lyft, Postmates, Doordash and Instacart spent more than $200 million this year backing a California state proposition known as Prop 22 — that has enshrined their workers as contractors in exchange for some limited benefits, including funding that can be used for health insurance.

  • They were fighting a new law in California, known as AB5, that changed rules on worker classification.

  • They won: 58% of California voters backed their gig-worker proposition.

    Uber planned to operate only in the San Francisco Bay Area, Los Angeles, Orange County and San Diego — employing just 45,000 drivers (instead of 200,000) — if California voters had rejected Prop 22 last month

Now the companies are working to export this approach to other states.
  • They're already begun to pour resources into states like Illinois.

  • They recently also formed the the App-Based Work Alliance, an advocacy group focused on federal-level policy.


Years of worker discontent and activism collided with this year’s pandemic to lay bare just how vulnerable gig workers are, while also giving them access for the first time ever to some traditional benefits.

  • That's boosted pro-labor efforts pushing for gig companies to reclassify workers as employees so they can receive full benefits and legal rights and protections.

  • Earlier this year in May, California Attorney General Xavier Becerra (who’s been selected to be the next secretary of health and human services by President-elect Biden), filed a lawsuit against Uber and Lyft for allegedly misclassifying their ride-hailing drivers. He was joined by the city attorneys of San Francisco, San Diego and Los Angeles.

The industry faces a long road:
  • States: 32 other states already use the same legal test to determine worker classification as California’s law, and some states are already introducing (or looking toward) even stricter measures.

  • Congress: The PRO Act, a bill that would expand collective bargaining rights and allow the National Labor Relations Board to fine companies breaking laws, passed in the House, though it's unlikely to be taken up by a GOP-controlled Senate.

  • White House: Both Biden and Vice President-elect Harris have expressed support for AB5, and their labor platform is strongly pro-union and endorses the PRO Act.

With their victory at the California voting booth, gig-economy companies hope 2020 will be a turning point in their efforts to thwart tougher rules.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
The Ledger Will Not Trust on Faith
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
The AI Race Enters Its Infrastructure Era
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
French National Assembly Overrides Senate to Pass Historic Assisted-Dying Legislation
Spanish Prime Minister's Wife Ordered to Stand Trial as Corruption Probes Encircle Governing Party
Zelensky Faces Kyiv Protests Over Ousting of Dynamic Ukrainian Defense Minister
Thomas Tuchel Faces Fierce Backlash After Tactical Retreat Costs England World Cup Final Berth
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Hungary's "Puppet" President to Be Ousted, Orbán Fumes: "Democracy Is Dead"
Forget Tinder: The Surprising Platform Where People Find Love
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
×