Economy would eliminate 70,000 jobs
SACRAMENTO (Calif.) – Tuesday’s lawsuit by the California Trucking Association sought to enact a new labour law. This would provide wage protections and benefit for employees in the gig market such as rideshare drivers at companies like Uber and Lyft.
According to the association, these laws could affect more than just truckers and would violate federal law. Many truckers would have to sell their trucks and also find a way to make sure they comply with interstate trade laws.
“Independent truckers are usually experienced drivers who have previously worked as workers but have intentionally chosen to work for themselves. Shawn Yadon, CEO of the institution, stated that they shouldn’t deny them this freedom.
Jan. 1, 2010: The new legislation makes it harder for employers to classify employees either as independent contractors or employees. Employees are eligible for minimum wages and workers compensation.
“We anticipate large corporate interest — especially those who have misclassified employees for decades — that will take this struggle back into the area where they know they can delay justice for employees, the courts,” Lorena Gonzalez, a Democratic Assemblywoman from San Diego, stated in a statement.
Although her office stated that it was the first lawsuit, Lyft Uber and DoorDash both said they would pay $90 million to oppose the law if they cannot negotiate principles. Uber stated it will defend the decision if necessary, and that it will continue to manage its drivers.
It could have an impact on home health aides, construction workers, and janitors. The law’s effect on ridesharing and delivery drivers of meal delivery vehicles has been the most discussed, as these firms don’t provide health insurance or pay drivers.
The legislation from the previous year implements a judgment.
The court used a three-prong approach to classifying their employees. A worker can be classified as a builder if they have no control over the company, are not employed in a trade, business, or occupation that is identical to the job they are currently doing.
The lawsuit was filed in San Diego federal court the same day that the University of California Berkeley Labor Center estimated that almost two-thirds of independent contractors (truck and cab drivers, maids, retail workers, grounds maintenance workers, and childcare workers) will be affected by the legislation.
Another 9% of jobs are in categories, which includes dentists, physicians, lawyers, accountants, and realtors.
The centre projects that 25% of employees will have insurance unless certain standards are met. These include hairdressers and barbers as well as designers and artists and building workers.