.hiltzikm weighs in on AB5 and the business models of Uber and Lyft:
Ride-hailing companies such as Uber and Lyft aren’t alone — lots of startups have sprung up in the gig economy to provide occasional work — but they’ve been at the forefront of the movement.
They proposed that “we update century-old employment laws” — carving out exceptions that plainly would benefit their own companies. They’ve put this notion forward in meetings attended by California labor officials, but labor sources say no one has placed any sort of formal proposal on the table. The unions say that any change aimed at undermining the right of collective bargaining and the application of existing employment regulations is a nonstarter.
The argument by Uber and Lyft that employee classification will harm drivers centers on a claim that it will deprive them of “flexibility” to set their own hours, which the companies say is the paramount attraction of their work. Instead, they say, an employee structure would require them to slot drivers into set shifts.
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