Uber, Lyft, DoorDash back ballot measure to weaken California’s new gig workers law

A group representing three major tech companies announced on Tuesday that it plans to file a ballot measure to weaken a new California law that would compel its members to provide full-time employment benefits to more workers.

The proposal, which is backed by Uber, Lyft and DoorDash, would allow the companies to continue classifying their drivers as independent contractors, while giving workers a few additional benefits if they meet certain criteria.

It would undo part of Assembly Bill 5, the labor-backed law Gov. Gavin Newsom signed in September that redefines which kinds of workers can be exempted from benefits like unemployment insurance and workers’ compensation.

The proposed ballot measure was narrowly tailored to cover drivers delivering people or packages. It would not apply to other professions covered by the new law, such as physical therapists or freelance journalists.

The companies pledged in August to spend $90 million on a potential ballot measure fight.

Brandon Castillo, a spokesman for the campaign, called the nature of the work of ride-sharing companies “truly different” and urged state lawmakers to recognize the distinction.

Under the initiative process, the group must file paperwork with California’s attorney general. That office will then assign a title and summary. After that, the campaign must collect about 650,000 signatures.

The signature-gathering is expected to take place in early 2020, and Castillo said the group plans to get 1 million Californians to sign onto the proposal to ensure it qualifies for the November ballot.

While gathering signatures, the group wants to work with lawmakers behind the scenes to get a special carve-out from Assembly Bill 5, which goes into effect at the start of 2020. Other groups, such as real estate agents and dog groomers, have received exemptions.

Lawmakers gave newspaper delivery carriers a temporary reprieve from the law of one year.

The Legislature reconvenes in January and will have until June 25 to reach an agreement with the companies. If a deal isn’t reached, the measure will head to voters.

Assemblywoman Lorena Gonzalez, D-San Diego, called the initiative “disingenuous.”

“These billion-dollar corporations still refuse to offer their workers what every other employee in California is entitled to: earning the minimum wage for all hours worked, social security, normal reimbursements for their costs, overtime pay, and the right to organize.”

The proposed initiative would not compel the companies to offer Social Security or overtime benefits. It would, however, provide a guarantee of 120 percent of minimum wage for every hour worked and $0.30 per mile for gas and car expenses.

Castillo said drivers would earn at least 120 percent of the minimum wage for the time they spend driving to pick up a rider or drop them off. While details are still being worked out, the drivers would likely not be compensated for the time spent waiting on an app to get a customer in the first place.

The ballot measure would also offer a health care stipend to drivers working at least 15 hours a week. Drivers working 25 hours a week would earn a stipend that’s equivalent to 82 percent of a Covered California Bronze health insurance plan. To receive the money, the workers would need to show proof of insurance.

Konstantine Anthony, a driver for Uber in Burbank, said the 120 percent threshold is below the $30 an hour some drivers are asking for in the state’s most expensive cities. He also said drivers should be able to be represented by a union that could advocate on their behalf about health care options.

A handful of drivers in attendance at the news conference on Tuesday said they’d support the ballot measure because it would ensure they have “flexibility.” They also added they don’t want to be considered as full-time employees.

Jermaine Brown, a driver with Uber and Lyft, said he left his job at a car rental company because he was working 60 hours a week and needed to spend more time with his family. He worries he wouldn’t be able to set his own hours and would have to work more often if he were no longer classified as an independent contractors.

Later in the day, a different coalition representing 20,000 drivers voiced their opposition the proposed ballot initiative, calling it “a scam” and an effort to circumvent labor laws.

Edan Alva, a driver with Lyft who lives in Alameda, chastised the companies for the millions of dollars they plan to spend to prevent workers from unionizing.

“They’d rather spend money on an undemocratic ballot than pay drivers a living wage or treat them as human beings,” Alva said.

Correction: An earlier version of this story said newspaper delivery carriers received exemptions from AB5. They did not. The delivery carriers will instead have a temporary, one-year reprieve before having to comply with the law. The story was updated at 11:30 a.m. Oct. 30.

This story was originally published October 29, 2019 at 11:57 AM.