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Lyft, Gig Economy Are Violating ‘Rule of Law,’ Judge Says



Lyft Inc. Application Amid Plan To File For IPO

Photographer: Gabby Jones/Bloomberg

A federal judge issued a sharp warning to Lyft Inc. — and other gig-economy companies that operate in California — that refusing to treat drivers like employees is “really disregarding the rule of law.”

During a hearing over a demand by drivers for sick pay during the coronavirus outbreak, U.S. District Judge Vince Chhabria said Thursday the refusal to reclassify drivers from independent contractors to employees violates a new California law, Assembly Bill 5, aimed at making it easier for workers to qualify for an array of workplace benefits from health care to overtime.

“It’s obvious that A.B. 5 applies by its terms to its drivers, and A.B. 5 was intended to apply to” companies like Lyft, Chhabria told lawyers during a teleconference. Lyft and other companies that resist reclassifying drivers “are really disregarding the rule of law,” he said.

Lyft said a majority of drivers prefer to remain contractors.

“We believe drivers, most of whom have other full or part time work and only drive a few hours a week at most, are properly classified as independent contractors,” the company said in a statement. “This is a complex issue that affects hundreds of thousands of people.”

The judge’s observations about the broader gig economy, and the implicit threat to its business model, amounted to a small sliver of Thursday’s hearing.

But his warning will probably prove important because Lyft, Uber and other firms that save millions of dollars in labor costs relying on independent contractors are engaged in multiple court battles over A.B. 5. It may be the first time a federal judge has so clearly articulated an opinion that the companies are on the wrong side of the law.

The hearing ended with no ruling from Chhabria on a request by Lyft drivers, under a different state law, for three additional sick days annually to cope with the Covid-19 pandemic.

The judge cautioned that if he did order the company to revise its sick-leave policy, drivers might end up forfeiting benefits under a federal emergency law — the same advice a different judge gave to Uber drivers Wednesday. Both Lyft and Uber have offered limited benefits to drivers sickened by the virus.

Read More: Uber Judge Says Ordering Sick Pay Could Backfire on Drivers

In November, Chhabria observed in a different case against Lyft that California gig-economy workers should be classified as employees under a 2018 state supreme court ruling. That ruling was the basis for A.B. 5, which took effect in January.

(Updates with Lyft comment in fourth paragraph)

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Global Global Gig Based Business Market Analysis, Size, Share, Growth, Trends and Forecast to 2026




Global  Global Gig Based Business  Market Analysis, Size, Share, Growth, Trends and Forecast to 2026

Global COVID-19 Impact on Global Gig Based Business Market Report industry size, share, growth, trends and forecast analysis up to 2026. COVID-19 Impact on Global Gig Based Business Market Report also covers top key players, porters five forces analysis and market segmentation in detail. This report examines the global COVID-19 Impact on Global Gig Based Business market and provides information regarding the revenue for the period 2020 to 2026.

The research report on ‘COVID-19 Impact on Global Gig Based Business market’ provides a detailed assessment of the industrial outlook while elaborating on the numerous market segmentations. Additionally, the report provides notable inputs in terms of the impact of COVID-19 on the industry growth. An analysis of various drivers, opportunities, and restraints influencing the industrial outlook is also covered in the study. Furthermore, it also elaborates on the regional landscape as well as the competitive terrain of the COVID-19 Impact on Global Gig Based Business market. The document underlines key aspects of the COVID-19 Impact on Global Gig Based Business market like the current revenue and sales stats and the estimated figures during the analysis period.

The report also consists of detailed insights on product information and ranks the manufacturers operating in the COVID-19 Impact on Global Gig Based Business market based on the revenue generated. The report is structured using analysis principles including Porter’s five forces analysis, bottom-up and top-down approach, and data triangulation.

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A gist of the regional landscape of the COVID-19 Impact on Global Gig Based Business market:

  • According to the report, the regional outlook of the COVID-19 Impact on Global Gig Based Business market is fragmented into North America, Asia-Pacific, Europe, Central & South America, Middle East & Africa.
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  • Detailed insights related to the market share, sales, and revenue generated are also incorporated in the report.
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Elaborating the competitive scale of the COVID-19 Impact on Global Gig Based Business market:

  • As per the report, TaskRabbit, Guru, Rover, HopSkipDrive, Freelancer, Fiverr, Favor Delivery, Upwork, DoorDash, BellHops and Turo companies formulate the competitive terrain of COVID-19 Impact on Global Gig Based Business market.
  • Important company-related information such as business overview, revenue generated, sales, and gross margin are cited in this report.
  • Products offered by the companies and recent developments that occurred in the company are also included in the report.

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  • The report segments the type terrain into Website-Based and APP-Based.
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  • The application spectrum of the COVID-19 Impact on Global Gig Based Business market is classified into Freelancer, Independent Contractor, Project Worker, Part-Time and Other.
  • Data pertaining to market size, product demand, revenue generation, product price, and growth rate estimates for application spectrum is also enlisted.
  • Important aspects like value chain and sales chain analysis is covered in this report.
  • A granular study on distribution channel, including producers, distributors, and end-users are underlined in the report.
  • Manufacturer merger and acquisitions, and expansion plans are also included in this study report.

What are the market factors that are explained in the report?

Key Strategic Developments: The study also includes the key strategic developments of the market, comprising R&D, new product launch, M&A, agreements, collaborations, partnerships, joint ventures, and regional growth of the leading competitors operating in the market on a global and regional scale.

Key Market Features: The report evaluated key market features, including revenue, price, capacity, capacity utilization rate, gross, production, production rate, consumption, import/export, supply/demand, cost, market share, CAGR, and gross margin. In addition, the study offers a comprehensive study of the key market dynamics and their latest trends, along with pertinent market segments and sub-segments.

Analytical Tools: The Global COVID-19 Impact on Global Gig Based Business Market report includes the accurately studied and assessed data of the key industry players and their scope in the market by means of a number of analytical tools. The analytical tools such as Porter’s five forces analysis, feasibility study, and investment return analysis have been used to analyze the growth of the key players operating in the market.

Finally, the COVID-19 Impact on Global Gig Based Business Market report is the believable source for gaining Market research that will exponentially accelerate your business. The report gives the principle locale, economic situations with the item value, benefit, limit, generation, supply, request, and Market development rate and figure, and so on. This report additionally Present a new task SWOT examination, speculation attainability investigation, and venture return investigation.

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Seattle Mandates Temporary Premium Pay and Other Benefits for Certain Gig Economy Workers During Pandemic




As we wrote about in more detail here, the ongoing coronavirus pandemic has brought increased attention to the legal and practical distinctions between employees (who are entitled to various compensation and employment benefits under the law) and independent contractors (who generally are not). The pandemic has also prompted lawmakers at the federal, state, and local level to explore further legislation designed to provide independent contractors with greater protections under the law.

The Seattle City Council has now passed two ordinances—the “Gig Worker Premium Pay Ordinance” and the “Gig Worker Paid Sick and Safe Time Ordinance”—that will temporarily impose heightened requirements on transportation network and food delivery network companies.

The Gig Worker Premium Pay Ordinance

The Gig Worker Premium Pay Ordinance went into effect at 8:30 p.m. on June 26, 2020. According to the City Council, the ordinance is designed to “increas[e] [the] retention of gig workers who provide essential services on the frontlines of a global pandemic and who should be paid additional compensation for the hazards of working with significant exposure to an infectious disease.”

Under this ordinance, food delivery network companies are required to pay delivery drivers at least $2.50 in premium pay for each delivery they complete with a pick-up or drop-off location in Seattle. If the order involves multiple pick-up or drop-off points, drivers are entitled to an additional $1.25 in premium pay for each additional pick-up or drop-off point in Seattle.

The ordinance requires food delivery network companies to remit premium pay at the same time at which they provide compensation for other components of the delivery, identify the specific orders that qualified for premium pay, and separately itemize premium pay when compensating drivers.

The ordinance also prohibits food delivery network companies from retaliating against drivers for exercising their rights under the law, and from: (i) reducing or modifying service areas in Seattle, (ii) reducing drivers’ compensation, (iii) limiting drivers’ earning capacity, including by restricting drivers’ access to online orders, and (iv) charging customers additional fees for grocery deliveries, if the ordinance is a “motivating factor” in the decision.

Finally, the ordinance requires food delivery network companies to provide drivers with written notice of their rights under the law.

Covered businesses are obligated to provide premium pay for the duration of the coronavirus civil emergency. And covered businesses must maintain records documenting their compliance with the ordinance for three years.

Drivers are entitled to lodge a complaint with the Seattle Office of Labor Standards (“OLS”) or file a civil action in court, in order to enforce the ordinance. Businesses that violate the ordinance will be subject to various penalties and fines, and payment of unpaid compensation owed under the law, liquidated damages, and attorneys’ fees and costs.

The Gig Worker Paid Sick and Safe Time Ordinance

Under the Gig Worker Paid Sick and Safe Time Ordinance, which will go into effect July 13, 2020, covered transportation network and food delivery network companies will be obligated to temporarily provide paid sick and safe time benefits to ride-share and food delivery drivers, notwithstanding the drivers’ independent contractor status. More specifically, covered drivers will earn one day of paid leave for every 30 calendar days that they work in whole or in part in Seattle, dating back to October 1, 2019, or the commencement of their engagement (whichever is later), and continuing through 180 days after certain civil emergency orders relating to the coronavirus pandemic have been terminated.

Drivers will have the right to use paid sick and safe time benefits in 24-hour increments for various reasons, including, among others: (i) to accommodate their need for medical diagnosis, care, or treatment, (ii) to care for a family member with a mental or physical illness, injury, or health condition, and (iii) when a covered business has reduced, suspended, or otherwise discontinued operations for any health or safety related reason. For each day of leave, drivers will be entitled to their “average daily compensation” (which includes any bonuses, commissions, and tips) from their highest earning calendar month since October 1, 2019.

Covered businesses will also be required to provide drivers with written notice of their rights, and of the businesses’ relevant policies and procedures for meeting the requirements of the ordinance. In addition, covered businesses will be prohibited from retaliating against drivers for exercising their rights under the law. Covered business will also be required to maintain records documenting their compliance with the ordinance for three years.

The OLS will enforce the ordinance, and drivers will have the right to lodge a complaint with the OLS, or file a civil action in court, if they believe their rights under the ordinance have been violated. Businesses that violate the ordinance will be subject to various penalties and fines, and payment of unpaid compensation owed under the law, liquidated damages, and attorneys’ fees and costs.


Although the requirements imposed by both Seattle ordinances are temporary, covered businesses will almost certainly need to make changes to their operations in the short-term. Businesses that engage independent contractors should also bear in mind that state and local governments in other jurisdictions may ultimately adopt legislation with similar objectives (particularly if the coronavirus pandemic continues to grow).

This document has been provided for informational purposes only and is not intended and should not be construed to constitute legal advice. Please consult your attorneys in connection with any fact-specific situation under federal law and the applicable state or local laws that may impose additional obligations on you and your company. © 2020 Epstein Becker & Green, P.C.

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Societe Generale to buy gig worker fintech Shine




The information you need to start your day, from PaymentsSource and around the web:

Lights on

Societe Generale has agreed to buy Shine, a French challenger bank that offers financial services for contractors and entrepreneurs.

The price is about $112 million, reports TechCrunch, adding Shine’s bundle includes a business account, debit card and business services like invoicing and accounting. Shine launched in 2018 and has about 70,000 consumers.

Shine will operate independently and its products will be sold to the bank’s business clients. SocGen is interested in expanding relationships with companies that are migrating to a full online model.

Searching for eyewear

Alphabet has acquired North, a Canadian firm that makes smart glasses, suggesting Google is getting ready to move beyond its own Google Glass eyewear. The price of the deal was not disclosed, though The Globe and Mail reports it was about $180 million.

Google Glass, which includes a camera, web access and functions such as the ability to read QR codes, launched earlier in the 2010s. It did not take off with consumers because of its price and unclear use case.

Google still offers Google Glass to businesses, and its announcement said North would contribute to Google’s ambient computing strategy, referring to a migration away from traditional computing devices to wearables and IoT.

Cross-border hub

MFS Africa has acquired digital payments firm Beyonic, boosting a menu of payment services for small to mid-sized businesses.

MFS operates an interoperable payments hub across Africa covering 200 million mobile wallets through an API. Beyonic specializes in payment support, collections and front-end business services, reports Finextra.

Terms of the deal were not disclosed, and it’s still subject to regulatory approval in Tanzania.

In transit

Smart city venture O-CITY has joined Visa Ready for Transit, which will boost O-CITY’s addressable market to hundreds of transit systems globally.

O-CITY is a division of BPC, and uses a SaaS model to quickly update transit networks to support open digital ticketing, moving transit away from closed loop ticketing systems that are unusable outside of the networks.

Transit ridership has suffered during the coronavirus lockdowns, though open loop and contactless technology is expected to play a role in bringing commuters back.

From the Web

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Financial technology firm TransferWise plans to launch a service that lets users of the account invest passively in investment funds from third-party providers.

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With the Chime Credit Builder Visa Credit Card, users can control how much they want to spend by transferring funds from a “Spending Account” to their Credit Builder Secured Account, and can then charge up to this amount wherever Visa is accepted.

BART Makes Mobile App Parking Payments Available Systemwide
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BART announced Monday that the option to pay for parking at its stations through the agency’s official smartphone app will now be available at all stations throughout the system.

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