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California Runs Off the Road. The new state labor law AB5 is causing trouble far and wide.
Wall Street Journal ^ | January 23, 2020

Posted on 01/24/2020 6:39:58 AM PST by karpov

Nancy Pelosi famously proclaimed that Democrats had to pass ObamaCare to find out what was in it. On the other hand, Democrats in California last year passed legislation outlawing many freelance and independent contracting jobs knowing the disruption it would cause—and voters are now discovering the damage.

Ride-hailing app Uber this week rolled out changes for drivers and riders in California in an effort to duck the state’s new labor law AB5. That law reclassified a large swath of independent contractors from freelance journalists to Uber drivers as employees who are owed rest breaks, workers compensation, health benefits and paid leave.

Under the law, independent contractors must be “free from control and direction”; perform work “outside the usual course of the hiring entity’s business”; and be “customarily engaged in an independently established trade, occupation, or business.” Few contractors pass this test, so Democrats exempted dozens of professions.

Now workers and businesses that didn’t win carve-outs are trying to navigate around the law. Uber is dropping up-front pricing in California, so riders won’t know their fare until after their trip ends. Drivers will also be able to reject trips based on their destination, which means passengers may find it difficult to hail rides to rough neighborhoods.

Uber is also letting drivers in some areas set their own fares, though some economists predict this will result in lower worker pay. Companies are also going to court. Uber and Postmates contend the law violates equal protection by unfairly discriminating against app-based companies, but their lawsuit is a long-shot since the law sweeps broadly.

...

Joe Biden, Elizabeth Warren, Pete Buttigieg and Bernie Sanders have all endorsed a national AB5. If you like your job, sorry, you might not be able to keep it if Democrats get their way.

(Excerpt) Read more at wsj.com ...


TOPICS: Business/Economy; Canada; Mexico; US: California; US: Delaware; US: Indiana; US: Massachusetts; US: Vermont
KEYWORDS: ab5; berniesanders; boycotts; california; canada; clowncar; delaware; elizabethwarren; fauxahontas; freelance; gavinnewsom; incometaxes; indiana; joebiden; joeclowncarbiden; labor; lyft; massachusetts; mexico; mikepence; nafta; petebuttigieg; sanctions; slingingbull; southbend; tariffs; taxcutsandjobsact; taxreform; tcja; trade; uber; usmca; vermont
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To: Bon of Babble

Calif. is a long. lean, political porta-potty!


21 posted on 01/24/2020 8:11:06 AM PST by Don Corleone (The truth the whole truth and nothing but the truth)
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To: karpov
35 articles per year limitation

I wonder what sort of genius came up with 35? Why not 34 or 36? Or 10 or 80?

This is central planning by the control freaks, and we know how well that works.

22 posted on 01/24/2020 8:20:25 AM PST by bkopto
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To: rainee

“According to the California Labor Commissioner’s website, the misclassification of workers as independent contractors costs the state roughly $7 billion in lost payroll taxes each year.”

CA self employment tax recovers that amount though. Do they mention that?


23 posted on 01/24/2020 8:27:37 AM PST by 386wt
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To: karpov

Democrats get their way nothing turns out good only loss for the people.PC and hate speech are speech control before they go for the guns Hitler winks.


24 posted on 01/24/2020 8:39:05 AM PST by Vaduz (women and children to be impacIQ of chimpsted the most.)
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To: scrabblehack

In re declining a ride,

1. The uber driver does not initially know where the rider is going.
2. He can cancel if he wants, but, Uber will drop you as a driver if you cancellation rate is over five percent or something.

As for taxis

1. I don’t know where the ride is going, either (I used to drive uber and drive a cab now)
2. I forbidden by law to decline a ride unless accepting it would keep me from turning in my cab in time. It is easy to report me to a live person at my company or at the MTA (my number is plastered all over my cab). I’d get a hearing but if I don’t give a good reason I will lose my A card (license to drive a cab)

Now it may be different in your city I don’t know.


25 posted on 01/24/2020 10:02:31 AM PST by Persevero (Desmond is not -Amazing- Desmond is -Abused-)
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To: karpov

When everyone works for the state the problem goes away, Comrades.


26 posted on 01/24/2020 10:05:43 AM PST by Billthedrill
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To: Leaning Right; Dilbert San Diego

Uber and Lyft drivers already reject trips on their destination. There even seetings, if you don’t want trips longer than 45 minutes, for example. Some driver will go far, others only take short trips.


27 posted on 01/24/2020 11:27:56 AM PST by nickcarraway
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To: Pride in the USA

To the last sane people in Cali: please turn the lights off when you leave.


28 posted on 01/24/2020 10:38:23 PM PST by lonevoice (diagonally parked in a parallel universe)
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