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Uber sues California over gig economy law
Uber is suing California over the state’s new labor rights law due to come into effect in the New Year.
The controversial A.B. 5 law mandates protections for gig economy workers such as minimum pay and sickness benefits.
Uber joined Postmates in filing the complaint, arguing it unfairly targets tech firms while other companies which use contractors have been given exemptions.
ASTA successfully secured an exemption for independent travel advisors.
The lawsuits cites ‘no rhyme or reason’ to the ‘nonsensical’ exemptions.
"Some are so ill-defined or entirely undefined that it is impossible to discern what they include or exclude," it claims.
DoorDash Inc., Lyft Inc. and Uber have said they will join forces in funding a $90 million campaign to persuade California voters to overturn the law in the next election.
Other lawsuits have also been filed representing freelance journalists.
"The one clear thing we know about Uber is they will do anything to try to exempt themselves from state regulations that make us all safer and their driver employees self-sufficient," said bill sponsor Lorena Gonzalez.
"In the meantime, Uber chief executives will continue to become billionaires while too many of their drivers are forced to sleep in their cars."
A.B. 5 states that workers can only be considered independent contractors if they perform work outside of the usual course of a company’s business.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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