AB5, the California State Supreme Court ruling in a strict test for a worker classifies as an independent contractor Governor Gavin Newsom's signature to become law. But that is unlikely to change for January 1, 2020, as it appears at least one of these companies wants to give up on a legal fight instead.
Tony West, Uber's chief legal officer, told reporters in a conference call today that the company has no plans to reclassify drivers as employees should Newsom sign AB5 as expected. ABOUT AB5'S STRICTER STORY Because "drivers' work is outside the usual course of Uber's business, which is serving as a technology platform" for different marketplaces.
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"The law does not say that drivers are employees," West maintained.
And West says Uber's position continues to be the driver wants to fall silent on the independent contractor side of that test. "We believe, given all the facts and circumstances."
In other words, Uber has no plans to change their designation of drivers any time soon.
To be fair, Iber has a good reason to believe they do not have to, at least not for a very long time. To understand why, look to Massachusetts.
Dyno Dynamex California Supreme Court decision, which adopted the so-called "ABC Test," which itself is based on a Massachusetts law that Has been on the books for Uber and Lyft's entire existence. Yet, Uber and Lyft are Massachusetts-based Massachusetts regulators.
The reason for this, according to Gavriela Bogin-Farber of the Massachusetts-based laboratory law firm Brass, Rudavsky & Weliky, PC, is because the law simply establish the test. It is not, as they put it, "self-executing."
And the courts are still working this out , Earlier this year, about 2013, Massachusetts and California for $ 20 million. No judge ruled on the issue of drivers are employees or independent contractors.
There was one wrinkle to AB5. AB5, city attorneys were granted the power to sue for worker misclassification.
In any event, West made clear during Wednesday's conference call Uber wants to continue to classify drivers as independent contractors while so pursuing a ballot measure to let voters decide.
West likened AB5 to a "harder test" that Uber must pass, but one he believes they will. "A harder test does not predetermine an outcome," West added. That wants to be up for the courts to decide.
Bogin-Farber said, "Uber can continue to classify workers as they want."