This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.nytimes.com/2020/05/05/technology/california-uber-lyft-lawsuit.html

The article has changed 23 times. There is an RSS feed of changes available.

Version 4 Version 5
California Sues Uber and Lyft, Claiming Workers Are Misclassified California Sues Uber and Lyft, Claiming Workers Are Misclassified
(30 days later)
OAKLAND, Calif. — California’s attorney general and a coalition of city attorneys in the state sued Uber and Lyft on Tuesday, claiming the companies wrongfully classified their drivers as independent contractors in violation of a state law that makes them employees.OAKLAND, Calif. — California’s attorney general and a coalition of city attorneys in the state sued Uber and Lyft on Tuesday, claiming the companies wrongfully classified their drivers as independent contractors in violation of a state law that makes them employees.
The law, known as Assembly Bill 5, requires companies to treat their workers as employees instead of contractors if they control how workers perform tasks or if the work is a routine part of a company’s business.The law, known as Assembly Bill 5, requires companies to treat their workers as employees instead of contractors if they control how workers perform tasks or if the work is a routine part of a company’s business.
At least one million gig workers in the state are affected by the law, which is supposed to give them a path to benefits like a minimum wage and unemployment insurance that have been traditionally withheld from independent contractors.At least one million gig workers in the state are affected by the law, which is supposed to give them a path to benefits like a minimum wage and unemployment insurance that have been traditionally withheld from independent contractors.
Although A.B. 5 took effect on Jan. 1, Uber, Lyft and other gig economy companies that operate in California have resisted and are not taking steps to reclassify their drivers. Uber, Lyft and DoorDash have poured $90 million into a campaign for a ballot initiative that would exempt them from complying with the law. Uber has also argued that its core business is technology, not rides, and therefore drivers are not a key part of its business.Although A.B. 5 took effect on Jan. 1, Uber, Lyft and other gig economy companies that operate in California have resisted and are not taking steps to reclassify their drivers. Uber, Lyft and DoorDash have poured $90 million into a campaign for a ballot initiative that would exempt them from complying with the law. Uber has also argued that its core business is technology, not rides, and therefore drivers are not a key part of its business.
The lawsuit also claims the ride-hailing companies are engaging in an unfair business practice that harms other California companies that follow the law. By avoiding payroll taxes and not paying minimum wage, Uber and Lyft are able to provide rides at “an artificially low cost,” the suit claims, giving them a competitive advantage over other businesses. The suit seeks civil penalties and back wages for workers that could add up to hundreds of millions of dollars.The lawsuit also claims the ride-hailing companies are engaging in an unfair business practice that harms other California companies that follow the law. By avoiding payroll taxes and not paying minimum wage, Uber and Lyft are able to provide rides at “an artificially low cost,” the suit claims, giving them a competitive advantage over other businesses. The suit seeks civil penalties and back wages for workers that could add up to hundreds of millions of dollars.
“California has ground rules with rights and protections for workers and their employers. We intend to make sure that Uber or Lyft play by the rules,” Xavier Becerra, California’s attorney general, said in a statement. The city attorneys of San Francisco, Los Angeles and San Diego joined in the lawsuit.“California has ground rules with rights and protections for workers and their employers. We intend to make sure that Uber or Lyft play by the rules,” Xavier Becerra, California’s attorney general, said in a statement. The city attorneys of San Francisco, Los Angeles and San Diego joined in the lawsuit.
California’s move is a significant threat to the gig companies and could influence other states with similar laws to take action against them, labor experts said.California’s move is a significant threat to the gig companies and could influence other states with similar laws to take action against them, labor experts said.
“Uber and Lyft have lived a kind of charmed life in terms of escaping law enforcement generally, and particularly with regard to employment law,” said William B. Gould IV, a law professor at Stanford University and the former chairman of the National Labor Relations Board. “The attorney general’s action can’t help but have a positive influence on law enforcement generally against them.”“Uber and Lyft have lived a kind of charmed life in terms of escaping law enforcement generally, and particularly with regard to employment law,” said William B. Gould IV, a law professor at Stanford University and the former chairman of the National Labor Relations Board. “The attorney general’s action can’t help but have a positive influence on law enforcement generally against them.”
Although Uber and Lyft have argued that their drivers have independence and decide when to work, the lawsuit claims that both ride-hailing companies exert enough control over drivers to make them employees. In remarks after the lawsuit was filed, Gov. Gavin Newsom of California said he would seek funding for enforcement of A.B. 5 in the state budget and that California had a responsibility to enforce the law.Although Uber and Lyft have argued that their drivers have independence and decide when to work, the lawsuit claims that both ride-hailing companies exert enough control over drivers to make them employees. In remarks after the lawsuit was filed, Gov. Gavin Newsom of California said he would seek funding for enforcement of A.B. 5 in the state budget and that California had a responsibility to enforce the law.
“Uber and Lyft are traditional employers of these misclassified employees. They hire and fire them. They control which drivers have access to which possible assignments,” the lawsuit says. “Uber and Lyft are transportation companies in the business of selling rides to customers, and their drivers are the employees who provide the rides they sell.”“Uber and Lyft are traditional employers of these misclassified employees. They hire and fire them. They control which drivers have access to which possible assignments,” the lawsuit says. “Uber and Lyft are transportation companies in the business of selling rides to customers, and their drivers are the employees who provide the rides they sell.”
Because ride-hailing companies and app-based food delivery services do not employ drivers, they avoid the costs of insurance and vehicle maintenance, sick leave and unemployment. But the coronavirus pandemic has exposed gaps in the gig economy, as drivers have abruptly lost their income and struggled to get unemployment insurance, or fallen sick without access to paid sick leave.Because ride-hailing companies and app-based food delivery services do not employ drivers, they avoid the costs of insurance and vehicle maintenance, sick leave and unemployment. But the coronavirus pandemic has exposed gaps in the gig economy, as drivers have abruptly lost their income and struggled to get unemployment insurance, or fallen sick without access to paid sick leave.
“Uber and Lyft are breaking the law. We are going to put a stop to it,” said Dennis Herrera, the city attorney of San Francisco. “This pandemic just highlights the danger of the work these essential workers are doing.”“Uber and Lyft are breaking the law. We are going to put a stop to it,” said Dennis Herrera, the city attorney of San Francisco. “This pandemic just highlights the danger of the work these essential workers are doing.”
Lyft said in a statement that it was “looking forward” to working with the attorney general and mayors “to bring all the benefits of California’s innovation economy to as many workers as possible, especially during this time when the creation of good jobs with access to affordable health care and other benefits is more important than ever.”Lyft said in a statement that it was “looking forward” to working with the attorney general and mayors “to bring all the benefits of California’s innovation economy to as many workers as possible, especially during this time when the creation of good jobs with access to affordable health care and other benefits is more important than ever.”
Gig companies have responded to the outbreak by offering limited quarantine pay to drivers who receive a positive coronavirus diagnosis or a doctor’s recommendation to isolate themselves. The companies have also distributed hand sanitizer and other cleaning supplies to drivers.Gig companies have responded to the outbreak by offering limited quarantine pay to drivers who receive a positive coronavirus diagnosis or a doctor’s recommendation to isolate themselves. The companies have also distributed hand sanitizer and other cleaning supplies to drivers.
Uber has worried that providing those things could expose it to misclassification claims from workers, and the company has asked lawmakers to shield it from lawsuits over how its drivers are classified if it provides the drivers with medical supplies or compensation. Its chief executive, Dara Khosrowshahi, wrote a letter to President Trump recently asking for a new classification for drivers that would make them neither employees nor contractors.Uber has worried that providing those things could expose it to misclassification claims from workers, and the company has asked lawmakers to shield it from lawsuits over how its drivers are classified if it provides the drivers with medical supplies or compensation. Its chief executive, Dara Khosrowshahi, wrote a letter to President Trump recently asking for a new classification for drivers that would make them neither employees nor contractors.
Mr. Khosrowshahi has called for a so-called third way of classifying workers, which would provide some health benefits to drivers without making them employees who could receive full employment benefits.Mr. Khosrowshahi has called for a so-called third way of classifying workers, which would provide some health benefits to drivers without making them employees who could receive full employment benefits.
The lawsuit criticized Uber and Lyft’s lobbying efforts, including a ballot initiative that would exempt the companies from complying with A.B. 5. “Amid a once-in-a-century pandemic, they have gone to extraordinary lengths to convince the public that their unlawful misclassification scheme is in the public interest,” the suit said.The lawsuit criticized Uber and Lyft’s lobbying efforts, including a ballot initiative that would exempt the companies from complying with A.B. 5. “Amid a once-in-a-century pandemic, they have gone to extraordinary lengths to convince the public that their unlawful misclassification scheme is in the public interest,” the suit said.
Uber said on Tuesday it would press forward with its ballot initiative. “We will contest this action in court, while at the same time pushing to raise the standard of independent work for drivers in California,” said Matt Wing, an Uber spokesman.Uber said on Tuesday it would press forward with its ballot initiative. “We will contest this action in court, while at the same time pushing to raise the standard of independent work for drivers in California,” said Matt Wing, an Uber spokesman.
Updated June 2, 2020
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said.
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
The lawsuit comes at a fraught moment for Uber and Lyft, as the businesses struggle to adapt to the sudden decline in demand caused by the pandemic. Consumer data suggests that spending on ride-hailing has dropped as much as 83 percent. Lyft is expected to report its first-quarter earnings on Wednesday, while Uber reports on Thursday.The lawsuit comes at a fraught moment for Uber and Lyft, as the businesses struggle to adapt to the sudden decline in demand caused by the pandemic. Consumer data suggests that spending on ride-hailing has dropped as much as 83 percent. Lyft is expected to report its first-quarter earnings on Wednesday, while Uber reports on Thursday.
Before the pandemic, Uber and Lyft were racing to become profitable after their 2019 initial public offerings stumbled.Before the pandemic, Uber and Lyft were racing to become profitable after their 2019 initial public offerings stumbled.
But as demand has declined, both companies have tried to cut costs. Last week, Lyft laid off 17 percent of its work force, furloughed 5 percent, and cut pay for executives and remaining staff members. Uber is also considering layoffs and on Monday announced the closing of its food delivery business in Egypt, Honduras, Saudi Arabia and several other markets where it was deeply unprofitable.But as demand has declined, both companies have tried to cut costs. Last week, Lyft laid off 17 percent of its work force, furloughed 5 percent, and cut pay for executives and remaining staff members. Uber is also considering layoffs and on Monday announced the closing of its food delivery business in Egypt, Honduras, Saudi Arabia and several other markets where it was deeply unprofitable.
The stock prices of both companies declined on news of the lawsuit. Uber’s shares fell about 1 percent and Lyft’s fell 4 percent.The stock prices of both companies declined on news of the lawsuit. Uber’s shares fell about 1 percent and Lyft’s fell 4 percent.
Still, Uber and Lyft have reported that they have substantial cash reserves to weather the downturn caused by the pandemic. Uber said it had more than $8 billion, while Lyft said it had more than $2 billion.Still, Uber and Lyft have reported that they have substantial cash reserves to weather the downturn caused by the pandemic. Uber said it had more than $8 billion, while Lyft said it had more than $2 billion.
“In what world can you not pay your fair share?” said Lorena Gonzalez, a California Assembly member who represents southern San Diego and drafted A.B. 5.“In what world can you not pay your fair share?” said Lorena Gonzalez, a California Assembly member who represents southern San Diego and drafted A.B. 5.
The city and state attorneys involved in the suit said they believed it would succeed despite Uber’s ballot measure. “They are not going to succeed in any event. The voters are too smart for that,” said Mike Feuer, the city attorney of Los Angeles.The city and state attorneys involved in the suit said they believed it would succeed despite Uber’s ballot measure. “They are not going to succeed in any event. The voters are too smart for that,” said Mike Feuer, the city attorney of Los Angeles.
Noam Scheiber contributed reporting from Evanston, Ill.Noam Scheiber contributed reporting from Evanston, Ill.