A Bill in California Has Split the Democratic Party

[TexasTowelie]

A state bill that would reclassify most independent contractors as employees is revealing fractures between Obama-era Democrats and those seeking to lead the party into the future.


On Wednesday, a caravan of Lyft and Uber drivers, some 200 in total, arrived on the steps of the state capitol building in Sacramento. It marked the most recent stop in a multiday demonstration that started Tuesday, as drivers have traversed a route from Los Angeles to Uber’s headquarters in San Francisco, then on to the capitol, all in support of AB-5, a bill currently under consideration in the California State Senate.

If passed, that bill would reclassify Uber and Lyft drivers as employees, rather than independent contractors, a decision that could have profound and lasting consequences for both drivers and ridesharing companies themselves, along with numerous other companies that use freelancers or independent contractors. For the 220,000 Uber and Lyft drivers in the state, some of whom have been shown to make far less than minimum wage and all of whom are without benefits, reclassification as employees could result in significant increases in pay; for the ridesharing companies themselves, an increased cost of labor would make things even more difficult as they struggle to turn anything resembling a profit even currently. The decision could send shock waves not just through Silicon Valley, but through the gig economy broadly.

Drivers aren’t the only ones taking a keen interest in the bill. It’s quickly become a political litmus test for Democrats at the national level. And it’s fracturing the Democratic Party along battle lines, with Obama-era Democrats lining up behind Uber and Lyft while the presidential candidates and recently elected Democrats stump on behalf of AB-5.

The strange, fractious coalitions that have emerged tell the story of the embattled soul of the Democratic Party in miniature. On one side, the presidential candidates have marshaled their support of the bill, which is being backed by SEIU, a powerful and important labor union whose endorsement many are courting. Support from Elizabeth Warren, who proclaimed that “all Democrats need to stand up and say, without hedging, that we support AB 5 and back full employee status for gig workers,” and Bernie Sanders, who introduced a comparable proposal at the federal level and has endorsed AB-5 unequivocally, come as no surprise.

Read more: https://prospect.org/article/bill-california-has-split-democratic-party
(American Prospect)

[safeinOhio]

1. Pay a fair wage, or

there goes your loop hole.

[DIVINEprividence]

2. Pass it and no more ride sharing companies

I get what they are trying to do, but these companies will fold. Simple as that. Then all these folks can drive cabs if they want

[3Hotdogs]

3. Its basically a shitty model for the drivers. Taxi driving might be a better gig if it wasn't

competing for ride sharing.

As a taxi driver, you are not buying the car. You are not financially liable for serious accident. You are not paying for maintenance or repairs. You are not buying extra car insurance.

It is possible the ride share itself is not a viable system. When the driver pool shakes out because the drivers become aware that it is not the best deal, U and L will have to increase pay to drivers. But these companies are already losing money.

[MichMan]

4. Right now drivers are free to choose their own hours and schedules

I imagine that would not be the case if they were employees. The flexibility to accommodate family obligations and being able to work as much or as little as one likes are some of the factors that many drivers prefer

Some no doubt are going to be assigned the midnight shift in unpopular locations and will be required to request time off just like everyone else.

[TeamPooka]

5. Their compensation needs to be higher but it feels like they meet the definition of

independent contractor just by choosing their own hours and locations to work.
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