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Uber and Postmates claim gig worker bill AB-5 is unconstitutional in new lawsuit – TechCrunch

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Postmates and Uber have filed a complaint in California federal district court, alleging that a bill limiting how companies can label workers as independent contractors is unconstitutional. The complaint, which includes two gig workers as co-plaintiffs, was filed in U.S. District Court on Monday, days before Assembly Bill 5 (AB-5) is due to go into effect on Jan. 1. It asks for a preliminary injunction against AB-5 while the lawsuit is under consideration.

The complaint argues that AB-5 violates several clauses in the U.S. and California constitutions, including equal protection because of how it classifies gig workers for ride-sharing and on-demand delivery companies compared to the exemptions it grants to workers who do “substantively identical work” in more than twenty other industries.

AB-5 was authored by Assemblywoman Lorena Gonzalez, a Democrat representing the 80th Assembly District in southern California and signed into law in September by Governor Gavin Newsom. It is intended to uphold the ruling in Dynamex Operations West Inc. v Superior Court of Los Angeles, a landmark 2018 decision by the California Supreme Court about how employees and independent contractors should be classified, and ensure that gig economy workers are entitled to benefits like minimum wage, health insurance and workers’ compensation.

But the suit’s opponents, which includes tech companies whose business models rely on the gig economy, as well as groups of gig workers and freelance journalists, argue that it restricts their work opportunities and ability to earn money.

In addition to Uber and Postmates, the complaints’ plaintiffs also include Lydia Olson and Miguel Perez, drivers for on-demand companies. In a post on Postmates’ blog, Perez wrote that he joined the suit because AB5 “is threatening the freedom and flexibility I have relied on in recent years to support my family.”

A statement from Postmates said “AB5 is a blunt instrument, which is why lawmakers exempted 24 industries, seemingly at random, from its requirements.”

The company added that does not want to be exempted from AB-5 or reverse the Dynamex standard, but “call for industry and labor talks with the California legislature to modernize a robust safety net designed specifically for the needs of on-demand workers, that establishes a new portable benefits model, creates earnings guarantees higher than minimum age, and gives all workers both the strong voice they need and flexibility they demand—a framework not currently contemplated under state and federal law.”

As proof that AB-5 violates the equal protection clause, the complaint argues that “the vast majority of the statute is a list of exemptions that carve out of the statutory scope dozens of occupations, including direct salespeople, travel agents, grant writers, construction truck drivers, commercial fisherman, and many more. There is no rhyme or reason to these nonsensical exemptions, and some are so ill-defined or entirely undefined that it is impossible to discern what they include or exclude.”

The complaint also alleges that AB-5 violates due process by preventing people from choosing to work for gig companies, and the contracts clause because mandating companies like Uber and Postmates to reclassify contractors as employees will either invalidate or substantially change their existing contracts.

In statement about the lawsuit, Gonzalez said “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. In the meantime, Uber chief executives will continue to become billionaires while too many of their drivers are forced to sleep in their cars.”

The lawsuit follows several efforts to stop or limit AB-5. In October, a group of drivers for Lyft, Uber and DoorDash announced they had submitted a California ballet initiative for the November 2020 ballot in response to AB-5. The measure which received substantial financial support from those companies, seeks to enable drivers and couriers can continue to be independent contractors while guaranteeing benefits like a minimum wage, expenses, healthcare and insurances.

Earlier this month, several organizations representing freelancer writers filed a lawsuit in federal court in Los Angeles alleging AB5 places unconstitutional restrictions on free speech, the day after Vox Media announced it will cut hundreds of freelance positions in California as it prepares for the bill.



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Gig Based Business Market Importance, Latest Trends, Regional Forecast 2021 to 2025| TaskRabbit, Guru, Rover – NY Market Reports

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Chicago, United States: –  The report comes out as an intelligent and thorough assessment tool as well as a great resource that will help you to secure a position of strength in the global Gig Based Business Market. It includes Porter’s Five Forces and PESTLE analysis to equip your business with critical information and comparative data about the Global Gig Based Business Market. We have provided deep analysis of the vendor landscape to give you a complete picture of current and future competitive scenarios of the global Gig Based Business market. Our analysts use the latest primary and secondary research techniques and tools to prepare comprehensive and accurate market research reports.

Top Key players cited in the report: TaskRabbit, Guru, Rover, HopSkipDrive, Freelancer, Fiverr, Favor Delivery, Upwork, DoorDash, BellHops, Turo,

Get PDF Sample Copy of this Report to understand the structure of the complete report: (Including Full TOC, List of Tables & Figures, Chart)

The final report will add the analysis of the Impact of Covid-19 in this report Gig Based Business Market

Gig Based Business Market reports offers important insights which help the industry experts, product managers, CEOs, and business executives to draft their policies on various parameters including expansion, acquisition, and new product launch as well as analyzing and understanding the market trends.

Each segment of the global Gig Based Business market is extensively evaluated in the research study. The segmental analysis offered in the report pinpoints key opportunities available in the global Gig Based Business market through leading segments. The regional study of the global Gig Based Business market included in the report helps readers to gain a sound understanding of the development of different geographical markets in recent years and also going forth. We have provided a detailed study on the critical dynamics of the global Gig Based Business market, which include the market influence and market effect factors, drivers, challenges, restraints, trends, and prospects. The research study also includes other types of analysis such as qualitative and quantitative.

Global Gig Based Business Market: Competitive Rivalry

The chapter on company profiles studies the various companies operating in the global Gig Based Business market. It evaluates the financial outlooks of these companies, their research and development statuses, and their expansion strategies for the coming years. Analysts have also provided a detailed list of the strategic initiatives taken by the Gig Based Business market participants in the past few years to remain ahead of the competition.

 Global Gig Based Business Market: Regional Segments

The chapter on regional segmentation details the regional aspects of the global Gig Based Business market. This chapter explains the regulatory framework that is likely to impact the overall market. It highlights the political scenario in the market and the anticipates its influence on the global Gig Based Business market.

• The Middle East and Africa (GCC Countries and Egypt)
• North America (the United States, Mexico, and Canada)
• South America (Brazil etc.)
• Europe (Turkey, Germany, Russia UK, Italy, France, etc.)
• Asia-Pacific (Vietnam, China, Malaysia, Japan, Philippines, Korea, Thailand, India, Indonesia, and Australia)

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Report Highlights

• Comprehensive pricing analysis on the basis of product, application, and regional segments

• The detailed assessment of the vendor landscape and leading companies to help understand the level of competition in the global Gig Based Business market

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• Analysis of market effect factors and their impact on the forecast and outlook of the global Gig Based Business market

• A roadmap of growth opportunities available in the global Gig Based Business market with the identification of key factors

• The exhaustive analysis of various trends of the global Gig Based Business market to help identify market developments

Table of Contents

Report Overview: It includes six chapters, viz. research scope, major manufacturers covered, market segments by type, Gig Based Business market segments by application, study objectives, and years considered.

Global Growth Trends: There are three chapters included in this section, i.e. industry trends, the growth rate of key producers, and production analysis.

Gig Based Business Market Share by Manufacturer: Here, production, revenue, and price analysis by the manufacturer are included along with other chapters such as expansion plans and merger and acquisition, products offered by key manufacturers, and areas served and headquarters distribution.

Market Size by Type: It includes analysis of price, production value market share, and production market share by type.

Market Size by Application: This section includes Gig Based Business market consumption analysis by application.

Profiles of Manufacturers: Here, leading players of the global Gig Based Business market are studied based on sales area, key products, gross margin, revenue, price, and production.

Gig Based Business Market Value Chain and Sales Channel Analysis: It includes customer, distributor, Gig Based Business market value chain, and sales channel analysis.

Market Forecast – Production Side: In this part of the report, the authors have focused on production and production value forecast, key producers forecast, and production and production value forecast by type.

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Report Hive Research delivers strategic market research reports, statistical survey, and Industry analysis and forecast data on products and services, markets and companies. Our clientele ranges mix of United States Business Leaders, Government Organizations, SME’s, Individual and Start-ups, Management Consulting Firms, and Universities etc. Our library of 600,000+ market reports covers industries like Chemical, Healthcare, IT, Telecom, Semiconductor, etc. in the USA, Europe Middle East, Africa, Asia Pacific. We help in business decision-making on aspects such as market entry strategies, market sizing, market share analysis, sales and revenue, technology trends, competitive analysis, product portfolio and application analysis etc.

https://nymarketreports.com/


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Gig companies prepare to take their fight for independent work national under a more sceptical Biden administration

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Still fresh off of a landmark victory in California, companies like DoorDash, Instacart, Lyft and Uber are preparing to bring their message supporting an independent workforce nationwide.

But the companies will face new hurdles in passing similar legislation outside of California. The tradition of direct democracy through ballot measures that exists in the state is less common elsewhere, meaning companies will have to win over lawmakers, not just voters. And in Washington, they will have to face a new federal administration led by a president who openly opposed the California proposition while on the campaign trail.

Nearly 59% of California voters voted yes on Proposition 22, the ballot initiative supported by the gig companies to maintain their workers’ status as independent contractors, rather than employees. The measure would save the companies costly expenses that come with an employed workforce, but it would also require them to provide some new protections for app-based ridesharing and food delivery workers. Those would include benefits they could carry between apps and guaranteed minimum earnings.

The proposition essentially undermined a California law known as AB5 that took effect in early 2020. AB5 targeted the gig companies by establishing a three-part test to determine if workers should be classified as employees.

Prior to Election Day last year, Uber and Lyft were still fighting a lawsuit from the California state attorney general in court that claimed the companies illegally maintained their workers as independent contractors under the new law. A judge had granted a preliminary injunction requiring the companies to reclassify their workers, determining that the state had a good chance of prevailing on the merits.

The passage of Prop 22 seems to have reversed the fates of Uber and Lyft in California and reinvigorated the fight for their business models across the country. The gig companies point to the relatively high level of support California voters showed for their ballot measure as a reason why lawmakers in other states should see that the independent model is supported by their constituents.

But state lawmakers working on bills to protect gig workers in places like Illinois, Massachusetts and New York told CNBC that the outcome in California does not necessarily portend the future in their own states.

Source: Compsmag.com, Twiter

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Gig companies prepare to take their fight for independent work national under a more sceptical Biden administration

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In pandemic, business owners seek next gig | National

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Willen bakes for his two dogs, Cooper and Maple — which gave him the idea for Cooper’s Treats. He sells the treats on his website and Amazon.

“It’s looking like a real business,” he says.

Kathryn Valentine closed her consulting business last summer because she had lost her child-care options. Valentine’s nanny quit to take care of her own children, and daycare centers were closed. With a baby and a toddler, the Atlanta-based mother couldn’t work the 9-to-5 schedule followed by the apparel companies that were her clients. She had to come up with another line of work — and quickly.

She already was an expert in training women in negotiating, a skill necessary for career success. Valentine had researched the subject in business school, so she founded Worthmore Negotiations and began lining up corporate clients.

“About once a week I’ll have a commitment during the day, but otherwise all my work gets done after 7 p.m.,” she says. But Valentine hopes to revive her consulting business once the pandemic is over and she has child-care again. Her hope is to keep both businesses.

A series of lockdowns in Britain forced Steve West to close his acupuncture practice. With no money coming in, he returned to digital marketing, work that helped him get through a slowdown in his practice during the Great Recession. He’s not sure when, or if, he’ll return to acupuncture, given people’s uncertainty about close contact.

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