Gig Firms Know How to Fight to Save Their Business Model
Uber, Lyft and other gig-economy companies face a new challenge from the Biden administration to their use of contract workers, but as they gear up for a fight in Washington they could turn to a lobbying playbook that helped them score a decisive win against California regulators last year.
U.S. President Joe Biden campaigned on the promise of providing legal protections and benefits to gig workers, who as independent contractors generally have no access to unemployment insurance, sick pay and health insurance. U.S. Labor Secretary Marty Walsh said last week: “A lot of gig workers should be classified as employees.”
CORRECTED-FOCUS-Uber, Lyft have a California playbook to fight proposed U.S. rules on workers Reuters 4 hrs ago By Tina Bellon
(Corrects to reflect that AB5 is no longer the law in California for ride-hail and food-delivery workers, instead of that AB5 is no longer the law in California for anyone, paragraph 5; also corrects paragraph 20 to reflect that AB5 was defeated for app-based gig workers. )
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By Tina Bellon
May 3 (Reuters) - Uber, Lyft and other gig-economy companies face a new challenge from the Biden administration to their use of contract workers, but as they gear up for a fight in Washington they could turn to a lobbying playbook that helped them score a decisive win against California regulators last year.
Uber, Lyft have a California playbook to fight proposed U.S. rules on workers reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.
Under growing threat by a new U.S. administration insistent on reclassifying ride-hail and food delivery workers as employees with full benefits, gig economy companies including Uber, Lyft, Doordash and Instacart are pushing to keep drivers' independent contractor status, albeit with additional benefits.