Latest news with #Prop22
Yahoo
08-04-2025
- Business
- Yahoo
California lawmakers to propose legislation giving ride-hailing drivers right to unionize
California lawmakers are pursuing legislation that could give drivers for apps like Uber and Lyft the ability to form unions, while still being classified as independent contractors. Assemblymembers Buffy Wicks (D-Oakland) and Marc Berman (D-Menlo Park) plan to introduce Assembly Bill 1340, also titled the Transportation Network Company Drivers Labor Relations Act, on Tuesday. The legislation would allow drivers to negotiate pay as well as other terms of their agreements with app-based companies, exempting them from state and federal antitrust laws that would prohibit such activity, according to a draft reviewed by the Times. "Fundamentally what this bill seeks to do is empower rideshare drivers to advocate for better working conditions," Wicks said in an interview. The proposal does not include food delivery drivers. The exact process of how collective bargaining would be overseen by the state is not outlined in the proposal. Wicks and Berman said that they expect those details to be hashed out during the legislative process, with conversations from all stakeholders, including drivers, ride-hailing companies and Service Employees International Union California, which is backing the bill. Typically, antitrust laws would prevent collective action by independent contractors. For example, Seattle faced litigation when it attempted to establish a driver bargaining model through a local ordinance in 2015. The U.S. Chamber of Commerce and an Uber subsidiary successfully challenged the law, arguing that bargaining by independent-contractor drivers amounted to illegal concerted action and price fixing. The U.S. Court of Appeals for the 9th Circuit disagreed with the city's position that it had created a state-supervised regulatory program, finding that it was not exempt from antitrust law. Drivers for Uber and Lyft are considered independent contractors under a voter-approved state law — Proposition 22 — that went into effect in late 2020. The law originally had barred collective bargaining over drivers' compensation, benefits and working conditions, but an appeals court struck down the provision, arguing it inappropriately limited the California Legislature's authority. The state Supreme Court in a ruling last year largely upheld Proposition 22 but did not address the collective bargaining provision. SEIU California contends that the Legislature has the authority to allow drivers to collectively bargain, based on the appeals court ruling. However, if the bill is ultimately approved by lawmakers, it's possible ride-hailing companies might challenge it. 'A union is the only pathway for 600,000 rideshare drivers to improve their pay and working conditions under Prop 22," said Tia Orr, executive director of SEIU California, in an emailed statement. Uber and Lyft representatives said the companies opposed the proposal, arguing it would make rides more costly for consumers and go against the will of voters who approved Proposition 22. "At a time when families' budgets in California are stretched to the max, this proposal would make trips even more expensive," said Uber spokesperson Zahid Arab in an email. Lyft spokesperson Shadawn Reddick-Smith said Proposition 22 is drivers "preferred way to structure benefits and protections." The California proposal is similar to a ballot initiative approved by Massachusetts voters in the fall that was also backed by the Service Employees International Union — as well as the International Assn. of Machinists and Aerospace Workers. Uber and Lyft did not oppose the Massachusetts initiative. Minnesota lawmakers proposed a similar bill in February, and unions in Illinois have begun a campaign to unionize drivers in the state, with Uber agreeing to refrain from interfering with the effort. "This isn't coming out of left field, " Berman said. "It aligns with our values in California to make sure drivers get the rights they deserve." Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times.
Los Angeles Times
08-04-2025
- Business
- Los Angeles Times
California lawmakers to propose legislation giving ride-hailing drivers right to unionize
California lawmakers are pursuing legislation that could give drivers for apps like Uber and Lyft the ability to form unions, while still being classified as independent contractors. Assemblymembers Buffy Wicks (D-Oakland) and Marc Berman (D-Menlo Park) plan to introduce Assembly Bill 1340, also titled the Transportation Network Company Drivers Labor Relations Act, on Tuesday. The legislation would allow drivers to negotiate pay as well as other terms of their agreements with app-based companies, exempting them from state and federal antitrust laws that would prohibit such activity, according to a draft reviewed by the Times. 'Fundamentally what this bill seeks to do is empower rideshare drivers to advocate for better working conditions,' Wicks said in an interview. The proposal does not include food delivery drivers. The exact process of how collective bargaining would be overseen by the state is not outlined in the proposal. Wicks and Berman said that they expect those details to be hashed out during the legislative process, with conversations from all stakeholders, including drivers, ride-hailing companies and Service Employees International Union California, which is backing the bill. Typically, antitrust laws would prevent collective action by independent contractors. For example, Seattle faced litigation when it attempted to establish a driver bargaining model through a local ordinance in 2015. The U.S. Chamber of Commerce and an Uber subsidiary successfully challenged the law, arguing that bargaining by independent-contractor drivers amounted to illegal concerted action and price fixing. The U.S. Court of Appeals for the 9th Circuit disagreed with the city's position that it had created a state-supervised regulatory program, finding that it was not exempt from antitrust law. Drivers for Uber and Lyft are considered independent contractors under a voter-approved state law — Proposition 22 — that went into effect in late 2020. The law originally had barred collective bargaining over drivers' compensation, benefits and working conditions, but an appeals court struck down the provision, arguing it inappropriately limited the California Legislature's authority. The state Supreme Court in a ruling last year largely upheld Proposition 22 but did not address the collective bargaining provision. SEIU California contends that the Legislature has the authority to allow drivers to collectively bargain, based on the appeals court ruling. However, if the bill is ultimately approved by lawmakers, it's possible ride-hailing companies might challenge it. 'A union is the only pathway for 600,000 rideshare drivers to improve their pay and working conditions under Prop 22,' said Tia Orr, executive director of SEIU California, in an emailed statement. Uber and Lyft representatives said the companies opposed the proposal, arguing it would make rides more costly for consumers and go against the will of voters who approved Proposition 22. 'At a time when families' budgets in California are stretched to the max, this proposal would make trips even more expensive,' said Uber spokesperson Zahid Arab in an email. Lyft spokesperson Shadawn Reddick-Smith said Proposition 22 is drivers 'preferred way to structure benefits and protections.' The California proposal is similar to a ballot initiative approved by Massachusetts voters in the fall that was also backed by the Service Employees International Union — as well as the International Assn. of Machinists and Aerospace Workers. Uber and Lyft did not oppose the Massachusetts initiative. Minnesota lawmakers proposed a similar bill in February, and unions in Illinois have begun a campaign to unionize drivers in the state, with Uber agreeing to refrain from interfering with the effort. 'This isn't coming out of left field, ' Berman said. 'It aligns with our values in California to make sure drivers get the rights they deserve.'
The Guardian
26-03-2025
- Automotive
- The Guardian
California Uber and Lyft drivers push for settlement in wage theft claims
Ride-share drivers in Los Angeles, San Francisco and San Diego held demonstrations in front of city hall buildings on Wednesday as California state attorney General Rob Bonta, city attorneys and attorneys representing ride-share drivers continue negotiations next week with Uber and Lyft to settle thousands of claims of wage theft for drivers. At least 250,000 individual ride-share drivers in California who drove for the apps between 2016 and 2020 are estimated to be eligible for the settlement for wage theft claims of tens of billions of dollars, according to Rideshare Drivers United in California. In 2020, more than 5,000 drivers filed wage and hour claims with the California Labor Commission office against Uber and Lyft, alleging they were misclassified as independent contractors prior to the passage of Prop 22, a ballot initiative that created an exemption for gig workers to be classified as independent contractors. Daniel Russell worked full-time as a ride-share driver for Uber and Lyft between 2016 and 2020 in San Bernardino, California, and now works as a teacher and drives part-time. He estimates being owed about $300,000 from both companies in unpaid wages, including unpaid overtime, meal and rest breaks, and mileage reimbursement. 'The more I drove, it seemed, the more I got manipulated,' he said. 'One of the big ways you're losing is the depreciation on your car.' During that time, Russell said he worked 70- to 80-hour weeks, often chasing bonuses or trying to make up for the unreliable and inconsistent pay, and put 270,000 miles (435,000km) on a single vehicle in just over three years before it broke down, just as he finished paying it off. 'I get very frustrated when I hear ride-share companies claim it's a part-time job, it's not meant to be full time. No. They created a market and business that is relying on full-time labor, so they have to take accountability for that full-time labor,' he added. 'They built this massive company on the back of our labor. They were undercutting cab companies. They took losses for years to make this happen. Hopefully they will be held accountable for the law they weren't following before they wrote their own law, Prop 22. Drivers are entitled to that money.' Ben Valdez, an Uber driver in Los Angeles since 2015 who was working 20 to 25 hours a week during the four-year period, said he's owed nearly $200,000 from his wage theft claim he filed against the company. 'The companies need to pay the drivers what they what they're owed. They took advantage of a lot of drivers during the period of time,' said Valdez. 'It's not just about the earnings. There should be compensation for time based on the hours you actually work. The state of California needs to know that it's not just about the money owed. It's about changing the way that these companies operate.' Ibrahim Diallo, a ride-share driver based in San Francisco, claimed his pay has declined over the years during his time working for the apps. Studies, including those from the University of California, Berkeley, and the National Equity Atlas, have shown that pay for ride-share and delivery apps have remained significantly low, often below hourly minimum wage rates with expenses, taxes, and active working time taken into account, including after Prop 22 was enacted in California. Uber and Lyft have disputed low hourly average wages for drivers. 'I have struggled recently against homelessness while trying to still work as a driver,' Diallo said to Rideshare Drivers United. 'After expenses, many of us are earning less than minimum wage. This is inhumane. We need accountability and for the state to force these companies to make better standards for work.' A spokesperson for Uber said in an email 'drivers come to Uber precisely because of the unique flexibility that it provides. Prop 22 safeguarded their choice to work independently, while ensuring important new protections. The voters of California have spoken – overwhelmingly – and we look forward to putting these years-old matters behind us.' Lyft did not respond to multiple requests for comment.
