Court rules against Uber and Lyft + Mayors urge Newsom to back ‘split-roll’ + Latino representation
Good morning! It’s only Tuesday and the week has already been incredibly newsy. Let’s get right to it.
DENIED
Via Hannah Wiley...
California Attorney General Xavier Becerra and labor rights advocates earned a preliminary victory Monday after a state judge handed down a decision that, for now, will force ride-hailing giants Uber and Lyft to transition their drivers to employment status.
Judge Ethan P. Schulman of San Francisco Superior Court wrote in his 34-page order that the gig companies couldn’t wait until November to see what voters decide on a ballot measure that would let them keep drivers as independent contractors.
Instead, Schulman concluded, the companies must comply with Assembly Bill 5, last year’s landmark labor law that codified a 2018 state Supreme Court directive that most businesses must treat independent workers as employees with benefits.
“It is high time that they face up to their responsibilities to their workers and to the public,” Schulman wrote. “Now, when Defendants’ ridership is at an all-time low, may be the best time (or the least worst time) for Defendants to change their business practices to conform to California law without causing widespread adverse effects on their drivers.”
The judge is giving the companies 10 days before his preliminary injunction applies, during which it’s likely Uber and Lyft will appeal the decision. The early success for Becerra and AB 5 supporters, however, is sure to make the campaign for Proposition 22 even more consequential for the companies.
“We need to pass Prop 22 more than ever,” Jan Krueger, one of the ballot measure’s supporters said in a statement from the Yes on Prop 22 camp. “Sacramento politicians and special interests keep pushing these disastrous laws and lawsuits that would take away the ability of app-based drivers to choose when and how they work, even though by a 4:1 margin drivers want and need to work independently. We’ll take our case to the voters to protect the ability of app-based drivers to work as independent contractors, while providing historic new benefits like an earnings guarantee, health benefits and more.”
“While this fight still has a long way to go, we’re pushing ahead to make sure the people of California get the workplace protections they deserve,” Becerra said in a statement. “Our state and workers shouldn’t have to foot the bill when big businesses try to skip out on their responsibilities. We’re going to keep working to make sure Uber and Lyft play by the rules.”
MAYORS’ LETTER TO NEWSOM
More California mayors are getting behind Proposition 15, the ballot measure that would require many businesses to pay more tax by assessing their properties at market rate instead of purchase price.
A new group of mayors wrote a letter to Gov. Gavin Newsom, calling on him to throw his support behind the so-called “split-roll” initiative.
The letter, which includes signatures from by Los Angeles Mayor Eric Garcetti, Oakland Mayor Libby Schaaf and San Francisco Mayor London Breed, calls Prop 15 “a reasonable, necessary measure that will help us all meet the moment.”
“By closing these corporate property tax loopholes, we can generate nearly $12 billion every year for our K-12 schools, community colleges, and local governments — all while protecting homeowners and renters, small businesses, and agriculture. Moreover, by exempting small businesses whose property is worth $3 million or less and implementing new small business tax cuts, we can support our local businesses which have been so impacted by this crisis,” the letter reads in part.
Other mayors on the letter include Stockton’s Michael Tubbs, Palo Alto’s Adrian Fine and and Richmond’s Tom Butt.
The measure would make a “split roll” by creating different assessment practices for residential property and commercial property.
Residential property would continue to be assessed at purchase price, while commercial properties worth more than $3 million would be taxed on the current market value. The campaign opposing the measure, led by the California Business Roundtable, contends the initiative would weaken the state’s 1978 property tax restrictions and eventually raise the cost of rent for tenants and for small businesses.
The mayors’ letter cites an analysis of the proposition from Blue Sky Consulting Group, commissioned by the Yes on 15 folks, that finds that just 10% of the largest commercial commercial and industrial properties would generate 92% of the revenue.
REMAINING REDISTRICTING COMMISSION MEMBERS NAMED
Latinos are underrepresented on the commission that draws geographic boundaries for California political offices despite a campaign that highlighted their complete absence from the first group of people selected to serve on it.
Four of the 14 spots on the California 2020 Citizens Redistricting Commission are held by Latinos. That’s 29% percent of the commission.
The share disappointed Latino leaders who wanted the commission to more closely resemble California’s demographic makeup. Latinos represent 39.4% of California’s population.
“We shouldn’t have to beg for a spot at the table,” said former Senate President pro Tem Kevin de León, D-Los Angeles.
He spoke with The Sacramento Bee’s Kim Bojórquez about what he wanted to see from the panel. Check out her story here.
QUOTE OF THE DAY
Is protesting in front of a lawmaker or public official’s home good practice or poor strategy? When the Sunrise Movement Los Angeles showed up in front of Sen. Bob Hertzberg’s home, Democratic politico Steven Maviglio took to Twitter to criticize the strategy, leading to a spirited social media debate. You can see that Twitter thread here.
Best of the Bee:
Gov. Gavin Newsom said Monday that it will be extremely difficult — and likely impossible — for the state to provide funding needed to give California’s unemployment workers the entire $400 additional benefit President Donald Trump has announced to help the jobless get by in the coronavirus pandemic, via David Lightman
CalPERS chief’s resignation followed ethics complaint, allegations over $1 billion deal, via Dale Kasler
California has spent $43 million suing President Donald Trump’s administration over the past four years in a legal campaign that the state’s Democratic attorney general says has saved billions of dollars in funding the state would have lost had the White House carried out its policies, via Andrew Sheeler and Kate Irby.
On Monday, Newsom refused to answer questions about Dr. Sonia Angell’s departure from the California Department of Public Health, saying he did not want to discuss personnel matters publicly. He said she submitted a resignation letter, but he would not say if he asked her to resign, via Sophia Bollag.
This story was originally published August 11, 2020 at 4:55 AM.