Uber is sued over resistance to California 'gig' contractor law




Uber is sued over resistance to California 'gig' contractor law


By Jonathan Stempel

(Reuters) - A driver for Uber has sued the company for misclassifying its drivers as independent contractors, hours after California legislators voted to help thousands of those workers become, and enjoy the benefits of being, employees.

The proposed class action filed on Wednesday might by Uber driver Angela McRay appears to be the first since California's senate passed landmark legislation that could affect workers in many industries, in addition to ride-sharing companies such as Uber Technologies Inc (N:UBER).

Governor Gavin Newsom supports the proposed law, which is known as Assembly Bill 5 and would take effect on Jan. 1, though it may undergo changes before it reaches his desk.

McRay, a Pittsburg, California, resident who said she has driven for Uber since November 2016, faulted the company for having "publicly stated that it intends to defy this statute," by continuing to treat drivers as independent contractors.

"This ongoing defiance of the law constitutes a willful violation of California law," the complaint said. McRay is seeking damages for Uber drivers in California, and an injunction requiring compliance.

Uber did not immediately respond on Thursday to a requests for comment.

Chief Legal Officer Tony West said on Wednesday that the law did not automatically reclassify drivers, but Uber could "pass the harder test to the satisfaction of arbitrators and courts."

The law has attracted national attention because of the size of California's workforce, which includes several hundred thousand contract workers.

Labor groups and other supporters of the law have said it would help long-suffering contractors by entitling them to coverage under minimum wage and overtime laws, and afford greater access to health insurance and expense reimbursements.

The law has also been criticized by trade groups and "gig economy" companies dependent on contract workers because of the extra financial burdens.

Assembly Bill 5 would codify a 2018 California Supreme Court decision that narrowed when employers could classify workers as independent contractors.

Uber, rival Lyft Inc (O:LYFT) and DoorDash have pushed for separate legislation to boost driver pay and benefits while preserving their independent contractor status.

In March, Uber agreed to pay $20 million to settle a nearly six-year-old lawsuit by California and Massachusetts drivers over their classifications.

The case is McRay v Uber Technologies Inc, U.S. District Court, Northern District of California, No. 19-05723.





Related News

Stocks - U.S. Futures Flat After Chines Officials Break Off Extended U.S. Trip 
Today, 12:03
Investing.com - U.S. futures were flat on Monday, after Chinese officials cut their U.S. trip short and speculation remained on whether or not the two largest economies in the world will reach a trade deal in the coming months. Both sides said the
Top 5 Things to Know in the Market on Monday
Today, 11:24
Investing.com -- WeWork's CEO and founder Adam Neumann may go the way of Uber's Travis Kalanick, and there's no end in sight to the slowdown in global manufacturing. Here's what you need to know in financial markets on Monday, 23rd
NewsBreak: Oil Falls on Reports Saudi Production to be Restored by Next Week
Today, 11:21
Investing.com - Oil prices reversed gains on Monday following reports that top crude exporter Saudi Arabia is due to restore oil production as soon as next week after an attack on key output facilities earlier this month. Brent crude was down 30
Exclusive: Ceconomy eyes deal with heirs of Media Markt founder - sources
Today, 11:18
By Matthias Inverardi and Arno Schuetze DUESSELDORF (Reuters) - Germany's Ceconomy (DE:CECG), Europe’s biggest consumer electronics group, is in talks to resolve a long-running dispute with a major shareholder of subsidiary Media Saturn, people
Top Swiss court lets prosecutors help Italian oil corruption probe
Today, 11:15
ZURICH (Reuters) - Switzerland's top court has allowed Geneva prosecutors to share with Italy material they seized more than three years ago that could shed light on a case involving oil majors Eni (MI:ENI) and Royal Dutch Shell (L:RDSa) and



Latest News
Stocks - U.S. Futures Flat After Chines Officials Break Off Extended U.S. Trip 
23.09.2019 12:03
Investing.com - U.S. futures were flat on Monday, after Chinese officials cut their U.S. trip short and speculation remained on whether or not the two largest economies in the world will reach a trade deal in the coming months. Both sides said the talks were constructive, but neither gave any details about what was discussed. Chinese officials
Read more
Top 5 Things to Know in the Market on Monday
23.09.2019 11:24
Investing.com -- WeWork's CEO and founder Adam Neumann may go the way of Uber's Travis Kalanick, and there's no end in sight to the slowdown in global manufacturing. Here's what you need to know in financial markets on Monday, 23rd September. 1. Softbank looks for the ejector seat button Softbank, the largest outside shareholder in
Read more
NewsBreak: Oil Falls on Reports Saudi Production to be Restored by Next Week
23.09.2019 11:21
Investing.com - Oil prices reversed gains on Monday following reports that top crude exporter Saudi Arabia is due to restore oil production as soon as next week after an attack on key output facilities earlier this month. Brent crude was down 30 cents to $63.97 a barrel by 6:00 AM ET (10:00GMT). U.S. West Texas Intermediate crude fell 33 cents to
Read more
Exclusive: Ceconomy eyes deal with heirs of Media Markt founder - sources
23.09.2019 11:18
By Matthias Inverardi and Arno Schuetze DUESSELDORF (Reuters) - Germany's Ceconomy (DE:CECG), Europe’s biggest consumer electronics group, is in talks to resolve a long-running dispute with a major shareholder of subsidiary Media Saturn, people close to the matter said on Monday. Under the transaction being discussed, the holding of the
Read more
Top Swiss court lets prosecutors help Italian oil corruption probe
23.09.2019 11:15
ZURICH (Reuters) - Switzerland's top court has allowed Geneva prosecutors to share with Italy material they seized more than three years ago that could shed light on a case involving oil majors Eni (MI:ENI) and Royal Dutch Shell (L:RDSa) and corrupt payments in Nigeria. In a ruling announced on Monday, the Federal Tribunal rejected Nigerian
Read more