Economy

Uber and Lyft Fighting Back Against AB 5 with Proposition 22

Written by Julianne Foster

Assemblywoman Lorena Gonzalez’s Assembly Bill 5 may continue to support the Democrat agenda by focusing on the financial needs of the state ahead of the jobs and livelihoods of millions of Californians. A preliminary injunction was requested by California Attorney General Xavier Becerra against Uber and Lyft for supposedly violating AB 5. Becerra argues that Uber and Lyft are avoiding paying payroll taxes and unemployment insurance for their workers. 

Democrat leaders like Gonzalez and Becerra have suggested that Uber, Lyft, and other contracting businesses are exploiting workers by not offering them various benefits. They act as if independent contractors do not accept and perform these jobs voluntarily for a variety of reasons, such as schedule flexibility and higher hourly compensation.

Uber and Lyft were on the verge on indefinitely suspending their services in California, until a court granted their appeal against Becerra’s injunction.

Besides the Democrat greed for money from Uber and Lyft, and their idea of mandating certain benefits for employees through enforcing AB 5 would result in the loss of millions of jobs and sources of income for families already dealing with financial stress due to the pandemic. Uber and Lyft intend to do more through Proposition 22, which would exempt the ride-share companies from compliance with AB 5, something that numerous other industries have already been awarded.

Prop 22 protects the rights of drivers to work as independent contractors with flexible work schedules so they can work around their life. It also provides new health care benefits and guaranteed minimum wage earnings. “We are glad that the Court of Appeals recognized the important questions raised in this case, and that access to these critical services won’t be cut off while we continue to advocate for drivers’ ability to work with the freedom they want,” an Uber spokesperson announced.

Prop 22 has earned bipartisan support from the mayors of the second and third largest cities in California. San Diego Mayor Kevin Faulconer was joined by San Jose Mayor Sam Liccardo in defending the companies and their workers against AB 5.

The California State Sheriffs’ Association also shared a powerful perspective on the necessity of Uber and Lyft drivers for public safety purposes.

The fate of the ride-share business model in California will likely be determined by the outcome of Prop 22 in November. Its passage would allow the companies to continue operating as they have been, while its failure would almost certainly force them to leave, potentially resulting in the loss of one million jobs.

 

Photo via QuoteCatalog.com