header image

[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Inside
Weather
Santa Clarita CA
Sunny
Sunny
69°F
 
Calendar
Today in
S.C.V. History
April 1
2004 - Last day in Sacramento for Sen. Pete Knight, who succumbs one month later to a sudden onset of leukemia [story]
Pete Knight


SAN FRANCISCO — The fate of more than 100,000 Uber and Lyft drivers lies in the hands of a state court judge, who after a nearly three-hour hearing Thursday lamented his inability to fully predict the ramifications of a potential court order extending employment benefits to California drivers.

“I feel a little like I’m being asked to jump into a body of water without knowing how deep it is, how cold the water is or what’s going to happen when I get in,” San Francisco Superior Court Judge Ethan Schulman said during a virtual court hearing Thursday.

Joined by the cities of San Francisco and San Diego, California Attorney General Xavier Becerra is asking Judge Schulman to issue a preliminary injunction that would require Uber and Lyft to comply with California’s Assembly Bill 5 and start classifying drivers as employees instead of independent contractors.

The state argues the worker misclassification has deprived drivers of crucial benefits, including minimum wage, overtime, sick pay, reimbursement for car and gas expenses, unemployment insurance, paid family leave and workers’ compensation.

Uber and Lyft say a preliminary injunction would force thousands of drivers to lose earning potential and federal benefits, eliminate scheduling flexibility for workers and require the companies to spend hundreds of millions of dollars on restructuring.

“A sweeping injunction as we have here raises questions on what will be the effect on drivers’ ability to earn income, hours they can work, eligibility for state and federal benefits,” Schulman said.

Attorneys for Uber and Lyft were quick to point out that Judge Schulman and a federal judge previously rejected efforts to make Lyft reclassify drivers as employees in a class action seeking emergency sick pay for drivers.

Both judges found that making Lyft provide a mere three days of sick leave as required by California law to a small portion of eligible drivers would put drivers at risk of losing emergency federal benefits for independent contractors.

But this lawsuit is different, San Francisco Deputy City Attorney Matthew Goldberg told the judge, because it would make drivers eligible for a more comprehensive panoply of state employment benefits, including up to 59 weeks of unemployment pay, up to 52 weeks of disability insurance and up to eight weeks of paid family leave.

“The full range of California benefits is substantial,” Goldberg said.

Representing Lyft, attorney Rohit Singla of Munger Tolles & Olson said drivers would earn less money if classified as employees. He cited a study showing the average Lyft driver makes $20 per hour after car and gas expenses, far more than California’s $13 hourly minimum wage for large businesses.

“They’re asking for this massive injunction that would lead to hundreds of thousands of people losing earning opportunities without evidence of harm,” Singla said.

Singla further insisted that drivers will lose flexibility if classified as employees, but nothing in California’s labor laws prevents companies from letting workers set their own schedules.

The Lyft lawyer also argued that his client could not maintain the same number of drivers if required to provide employment benefits. Goldberg called that claim bogus.

“Whether they reclassify employees or not, there will be precisely the number of drivers to meet the demand of riders,” Goldberg said. “There’s no reason to expect there will be less demand for these services.”

Despite clear evidence that state legislators specifically intended for AB5 to apply to gig companies, Uber attorney Theane Evangelis of Gibson Dunn & Crutcher steadfastly contended that her client is exempt from the law.

Evangelis said Uber is not the “hiring entity” of drivers that is subject to the law. Uber does not employ drivers but rather provides a technology platform that connects drivers to riders, she argued.

She cited recent changes to Uber’s platform that gives California drivers the power to set their own rates for rides. She added that a monthly subscription service for riders means Uber is not dependent on drivers to generate revenue, a concept Judge Schulman had some difficulty accepting.

“You just said Uber is not financially dependent on drivers providing rides,” Schulman said.

Evangelis replied that Uber, like Airbnb and eBay, is merely dependent on users using its platform.

Uber and Lyft also insisted that the balance of harms weighs in their favor because they would have to spend hundreds of millions of dollars hiring new supervisors, creating new procedures and expanding its human resources and payroll systems to reclassify drivers as employees.

Countering that argument, Goldberg noted that both companies have a combined $11 billion in cash reserves and maintain large white-collar workforces to support their platforms. Each of their software developers and white-collar workers get unemployment benefits, disability insurance, paid family leave and other perks, he said.

“Extending this set of benefits to more workers I think administratively is not as difficult as they allege given that they already do this for thousands of workers,” Goldberg told the judge.

After three hours of debate, Judge Schulman took the arguments under submission and said he would issue a written ruling “in matter of days, not weeks.”

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

0 Comments

You can be the first one to leave a comment.

Leave a Comment


Latest Additions to SCVNews.com
2004 - Last day in Sacramento for Sen. Pete Knight, who succumbs one month later to a sudden onset of leukemia [story]
Pete Knight
With the end of countywide COVID-19 emergency declarations on March 31, the Los Angeles County Department of Public Heal is aligning county safety measures with federal and state COVID-19 guidance, while continuing to require a few common-sense measures at worksites, educational institutions and healthcare facilities to reduce COVID-19-related disruptions and protect the people at highest risk of severe illness.
Public Health Issues COVID Guidance for Schools, Worksites, Healthcare
Vasquez Rocks Natural Area will host a Day at the Rocks family-friendly open house event on Saturday, April 29 from 10 a.m. to 2 p.m.
April 29: Day at the Rocks Open House Event
Want to try your hand at gardening but don’t have much space? Learn how to start your garden in a small space. Be creative and add vegetables and lush greenery to your patio. Join the Santa Clarita Valley Water Agency's free virtual landscape and gardening workshop, "Small Space Gardening," on Saturday, April 8, at 9 a.m.
April 8: SCV Water Hosts Free Small Space Gardening Class
The Santa Clarita Valley Sheriff's Station 2023 Baker to Vegas Team is competing in the 120 mile Baker to Las Vegas Challenge Cup Relay which starts in Baker, Calif. on Saturday, April 1 and ends in Las Vegas, Nev. on Sunday, April 2.
SCV Sheriff’s Station Competes in Baker to Las Vegas Relay
Los Angeles County Metropolitan Transportation Authority reminds drivers in the Santa Clarita Valley the I-5 North County Enhancements Project will continue with work on SR-14 to Magic Mountain Parkway and SR-126 to Parker Road planned for the week of April 3 to April 9.
April 3-9: I-5 North County Enhancements Project
Join Impulse Music Co. for another Impulse Rock Show on Saturday, April 1 at 6 p.m.
April 1: Impulse Music Rock Show
As you make your way down Main Street in Old Town Newhall, the sight of buffalo soldiers, the smell of an old cast iron Dutch ovens cooking peach cobbler and the sound of cowboy boots clacking against the wooden slats of the sidewalks will instantly transport you to the early days of the West.
Immerse Yourself in Rich Western Heritage at 2023 Cowboy Festival
California State Assemblywoman Pilar Schiavo announced that four of her key bills advanced out of committee unanimously and with bipartisan support.
Schiavo’s Bills Advance Out of Committee
The Rio Norte Junior High School Concert Band, Concert Choir and Vocal Jazz Ensemble, "The Jazz Hawks," secured top awards at the recent Music in the Parks Festival held at Knotts Berry Farm in Buena Park.
Rio Norte Concert Band, Vocal Jazz Ensemble Capture Top Awards
The California Department of Transportation advises motorists that all lanes on Southbound Interstate 5 will be closed on Saturday night, April 1 and Sunday night, April 2, as crews work to limit damage from a landslide in Castaic after a recent series of powerful storms and intense rainfall.
All SB I-5 Lanes Closed Overnight on Weekend to Repair Landslide
1870 - George Gleason & partners apply for patent on gold lode in Soledad Canyon [story]
gold mining
March comes in like a lion and out like a lamb.
Message from County Health Services Director Dr. Christina Ghaly
The Santa Clarita Valley Water Agency will hold an Engineering and Operations Committee meeting Thursday, April 6, at 5:30 p.m.
April 6: SCV Water Engineering, Operations Committee Meeting
Get ready "fore" some Topgolf Thursday, April 20, at 6 p.m., benefiting the local nonprofit The Painted Turtle.
April 20: Topgolf Fundraiser Benefits The Painted Turtle
Detectives with the Los Angeles County Sheriff's Department Fraud and Cyber Crimes Bureau are asking for the public's help identifying theft suspects.
Detectives Seek Help in Identifying Theft Suspects
Los Angeles County Parks is hiring. This Spring, we are looking to employ our local L.A. County Youth with an excellent entry level job that pays more than minimum wage ($16.04) and allows them to work at their local L.A. County Park, including Val Verde Park.
L.A. County Parks Seeking ‘Our Youth at Work’ Employees
Since the passing of the proposal to add Girls Flag Football as a CIF-approved sport, there has been a flurry of activity taking place.
CIF-SS Commissioner Gives Update on Girls Flag Football
The Los Angeles County Department of Health Services announced that the last day of operations for the COVID-19 PCR testing centers will be Friday, March 31.
L.A. County Health Services Closing PCR Testing Centers
Santa Clarita Valley residents once again came together during the 2022 holiday season to raise money and donate items to charity, as approximately 2,500 riders joined Santa Clarita Transit’s Holiday Light Tour.
Holiday Light Tour Donates Money, Canned Food to Local Nonprofits
Political activist and renowned scholar Dr. Angela Davis will speak at the Santa Clarita Performing Arts Center Saturday, April 15, at 3 p.m.
‘An Afternoon with Dr. Angela Davis’ Coming to PAC
Deborah Anderson, Los Angeles County Library’s assistant director of Education and Engagement, has been selected to receive the prestigious 2023 Sullivan Award for Public Library Administrators Supporting Services to Children.
L.A. County Library’s Deborah Anderson Wins Prestigious Sullivan Award
In alignment with both the U.S. Centers for Disease Control and Prevention and the California Department of Public Health, the Los Angeles County Department of Public Health will change to weekly reporting of COVID-19 cases, hospitalizations and deaths data beginning April 6.
Thursday COVID Roundup for Hart District, State
1993 - Federal govt. declares coastal California gnatcatcher (bird) a threatened species [story]
Gnatcatcher
SCVNews.com
%d bloggers like this: