Chattanooga Times Free Press

Confusion and defiance follow California’s landmark gig-worker law

- BY KATE CONGER AND NOAM SCHEIBER

SAN FRANCISCO — In a sign of the potential confusion and chaos set in motion by a landmark bill that the California Legislatur­e passed Wednesday to effectivel­y require companies to reclassify their contract workers as employees, Uber said it would not treat its drivers in the state as employees.

The measure requires companies to treat workers as employees — and provide them with the protection­s and benefits that come with the designatio­n — if they exert control over how workers perform their tasks or if the work is part of an employer’s regular business. Gov. Gavin Newsom has endorsed the bill and is expected to sign it.

Tony West, Uber’s chief legal officer, said Wednesday that the company was confident that its drivers will be able to legally maintain their independen­t status when the measure goes into effect Jan. 1.

“Several previous rulings have found that drivers’ work is outside the usual course of Uber’s business, which is serving as a technology platform for several different types of digital marketplac­es,” West said. He added that the company was “no stranger to legal battles.”

Uber’s early reaction is just one indication of the scrambling by employers across the state as the bill becomes a reality. Unlike contractor­s, employees are covered by minimum-wage and overtime laws. Businesses must also contribute to unemployme­nt insurance and workers’ compensati­on funds on their employees’ behalf.

California has at least 1 million workers who work as contractor­s and are likely to be affected by the measure, including nail salon workers, janitors and constructi­on workers.

For months, lawmakers have jockeyed to exempt a variety of job categories, including doctors, insurance agents and real estate agents.

Carrying out the mandate will likely be anything but orderly. Companies in dozens of industries must decide whether or not to comply preemptive­ly or risk being sued by workers and state officials. Some workers may find that their schedules and job descriptio­ns radically change, while others may be out of a job altogether if their employers conclude that paying them a minimum wage and benefits doesn’t make economic sense.

And California may be only the beginning, as lawmakers in other states, including New York, move to embrace such policies. Legislator­s in Oregon and Washington state said they believed that California’s approval gave new momentum to similar bills that they had drafted.

“It makes everyone take notice,” said state Sen. Karen Keiser of Washington, who expects her Legislatur­e to take up the measure next year. “It’s not just a bright idea from left field. It gives it a seriousnes­s and weight that is always helpful when you’re tying to pass a new law.”

Under the bill, a company must consider a three-prong test when classifyin­g a worker. That includes weighing how much the company directs the worker’s tasks and how much of the work is part of the company’s main business.

Historical­ly, if workers thought they had been misclassif­ied as a contractor, it was up to them to fight the classifica­tion in court. But the bill gives California cities leverage to enforce the law by suing companies that don’t comply.

San Francisco’s city attorney, Dennis Herrera, has indicated that he may take action.

“Ensuring workers are treated fairly is one of the trademarks of this office,” he said in a statement. “We have a track record of taking on such cases, whether it’s making sure workers receive proper health care or are paid what they’ve earned.”

 ?? CHRISTIE HEMM KLOK/THE NEW YORK TIMES ?? An Uber driver in San Francisco, Calif., shuttles passengers to their destinatio­n in 2017.
CHRISTIE HEMM KLOK/THE NEW YORK TIMES An Uber driver in San Francisco, Calif., shuttles passengers to their destinatio­n in 2017.

Newspapers in English

Newspapers from United States