Protect App Based Drivers and Services is formed by a group of couriers and drivers for DoorDash, Uber Technologies Inc (NYSE:UBER), and Lyft Inc (NASDAQ:LYFT) to get an exemption from California Gig Workers Bill. The companies would support the group to implement Ballot Measure with a funding of $90 million and hopes to pass the measure in 2020.
Assembly Bill 5
Gavin Newsom, the Governor of California, signed the Assembly 5 into law on September 18, 2019. The law calls for the ABC test to determine whether someone is an employee or contractor. According to the opinion of legal experts, the gig companies such as DoorDash, Uber, and Lyft will find it difficult to categorize the couriers and drivers as independent contractors. The newly enacted law poses a threat to the business model of gig companies.
Uber and Lyft prepared a contingency plan
Uber, DoorDash, and Lyft have prepared a contingency plan even before enacting Assembly Bill 5. The companies hope to get a reprieve from the new law and appeal to the voters directly. The labor leaders and the Newsom Administration have missed out on the opportunity to improve the dignity, security, and quality of the independent work.
The ballot measure seeks the approval of voters for the following:
- Establishing 120% of the minimum wages, which allow the drivers to work anywhere, and any time and a choice to work with
- Providing $0.30 to cater for the expenses such as wear and tear of the vehicle and pay for gas
- To protect the drivers from occupational injuries with an insurance coverage
- Liability insurance and automobile accident
- Health care subsidies to the drivers, who work 15 hours or more in a week, under the affordable care act
- Safeguarding against sexual harassment and discrimination
- Safety training for the drivers
- Background check of the drivers
- Putting a cap on the maximum working hours in a day and prevent sleepy driving
- No tolerance for drug offenses and alcohol
It is a modified version of the failed proposal put forward by the gig companies previously to prevent Assembly Bill 5 passage. With the passage of Assembly Bill 5, the drivers would lose the flexibility to drive at any time they want.
