The California law meant to protect Uber and Lyft drivers, as well as other gig workers, remains embattled and uncertain on multiple fronts. We’re watching to see how the U.S. Solicitor General responds, but every development seems to spark more questions than answers.
Here’s a rundown:
The law, which took effect in 2020 but quickly faced challenges that put it in limbo, was intended to prevent companies from denying employment protections and benefits to their workers by misclassifying them as independent contractors.
However, the ripple effects of the law included outrage from certain industries that have long relied on an independent contractor model. Objectors included freelance journalists, writers, musicians, photographers — any workers who rely on independent status and contracts with multiple employers to make a living. A follow-up bill signed in September 2020 detailed certain exemptions, but resolution remains elusive.
In the courts
In October, a U.S. appeals court refused to stop implementation of AB5, despite complaints from freelance journalists who said it limited their employment options. That legal battle likely isn’t over; the American Society of Journalists and Authors, among others, sees laws such as AB5 as threats to writers’ livelihoods.
Opinions about AB5 also are hot in the trucking industry — trucking companies starkly oppose it, while the law may help struggling independent truck drivers, according to an article in TIME. Motor carriers’ legal challenges carried the matter to the U.S. Supreme Court, which in November asked the U.S. Solicitor General to file a brief expressing the views of the United States. That signals some interest in taking up the matter. In the meantime, AB5 can’t be enforced against motor carriers, freight industry news site Freightwaves notes.
At the ballot box
In 2020, Uber and Lyft spent roughly $200 million taking their case to voters, trying to sidestep AB5 by offering a certain level of alternative benefits while still getting to classify their drivers as independent contractors. But even passage of that initiative (Proposition 22) didn’t resolve anything — a California Superior Court judge ruled it unconstitutional and unenforceable. The prospect: Another potentially prolonged court battle, with gig workers still in limbo.
At the federal level
Even if all of the above shakes out in a way that makes sense, a simultaneous push could end up taking the matter out of states’ hands.
At the federal level, Democrats are pushing for more protections for independent contractors, borrowing ideas from AB 5 and undoing prior rules that made it easier for businesses to classify workers as independent contractors, according to POLITICO. Also, the National Labor Relations Board’s new general counsel has plans to address the matter, including whether independent contractors should be able to unionize.
As this situation demonstrates, employment law and conflict with any type of employer can be intimidating and confusing. If your employer isn’t treating you fairly, the experienced employment lawyers at Keller Grover offer free consultations to help you understand your rights, protections and options. In more than 25 years litigating fraud and employment cases, we have recovered hundreds of millions of dollars for clients and class members.
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- New rules for classifying independent contractors: A win for workers
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