You can tell we’re well into the midst of the campaign season when presidential hopefuls reveal their plans for handling various societal concerns. We saw it as several Democratic candidates lined up to offer their plans to combat pay equity issues. Now, it’s the gig economy’s turn. A few months ago, South Bend Mayor Pete Buttigieg put forth a plan that called for greater protections for gig economy workers. Next up: Senator Bernie Sanders.…
Gig Companies Lose Round 2 in New Prime Battle As Courts Debate Whether Workers Are Exempt From Arbitration A federal appeals court decided last week that ride-share drivers engaging in interstate commerce while performing work for Uber should not be subject to the company’s arbitration agreement because of a recent Supreme Court ruling broadly interpreting a federal law exemption that applies to independent contractors. This September 11 ruling threatens to upend a pivotal tool that…
Good news for Postmates delivery drivers…and for gig economy businesses across the country. The company recently announced that it would offer accident insurance benefits to its entire fleet of independent contractor drivers, providing the kind of safety net that many gig workers crave. Starting October 1, drivers will receive up to $1 million in free accident coverage for expenses that arise during an active delivery. According to Business Insurance, the insurance offering “also covers…
California Governor Gavin Newsom wasted little time by signing AB 5 into law earlier today, and his signing statement should cause quite a few eyebrows to be raised. It was no surprise that he signed the bill into effect; he said he would do as much in an op-ed posted several weeks ago in the Sacramento Bee. For this unaware, the new law will dramatically raise the bar for classifying a worker as an independent…
“Anything you can do, I can do better.” That’s essentially the sentiment floating around Albany these days as New York lawmakers look enviously towards California and its groundbreaking new law that will soon revolutionize the way workers are characterized as contractors or employees. In the wake of California’s AB 5 – a bill that will codify the stringent ABC test into state law and make it extremely difficult for companies to classify their gig economy…
Negotiations continued right up until the end, but when the dust settled on California’s newest employment law, gig economy companies were not spared from the worst. Yesterday, state lawmakers passed AB 5, the state law that will not only codify the same ABC test introduced to the state in last year’s Dynamex decision but will take it a few steps further. Although we had long predicted that this law would pass in some form or
One Fewer Headache: NLRB Holds That Misclassification Won’t Lead To Labor Law Violations Chalk up in the win column for businesses. Yesterday the National Labor Relations Board ruled that companies found to have misclassified workers as contractors will not automatically face liability for an unfair labor practice. We wrote about this issue back in February 2018 when the NLRB sought briefing on the matter, and we said then that such a request “could be good…
A California State Senate leader may have thrown cold water on the idea that we will see a 2019 legislative solution to the misclassification debate that would preserve the gig economy workforce model as we know it, but her office later clarified that a compromise was still possible before the close of this session. Senate President pro Tem Toni Atkins told Capital Public Radio on Wednesday that it is unlikely the legislature would be able…
Democratic Presidential Contender’s New Plan Calls For Protections For Gig Workers The Gig Economy has caught the attention of at least one presidential candidate who has unveiled a plan called “A New Rising Tide” which, among other things, calls for greater protections for gig economy workers. South Bend Mayor Pete Buttigieg has put forth a plan that calls for guaranteeing “gig economy workers their labor rights, including unionization” and states that “millions…
With just a one-page, single-paragraph Order, the 9th Circuit Court of Appeals yesterday provided the faintest glimmer of hope for gig economy businesses everywhere – but especially for those in California. The federal appeals court withdrew its May 2 decision that had extended the Dynamex decision on a retroactive basis, meaning that the ABC test might not necessarily be as broadly applied as we recently thought. Instead, the 9th Circuit decided to send the issue