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AB5 HAS PASSED

Bob Reynolds

Well-Known Member
SACRAMENTO — The California Senate on Tuesday passed gig-work legislation that could transform the state’s employment landscape, turning many independent contractors into employees. The vote was 29-11, along party lines.


California passes landmark bill that threatens to upend companies like Uber and Lyft
NBC NEWS 11 SEP 2019
  • California lawmakers passed a landmark bill on Tuesday that threatens to reshape how companies like Uber and Lyft do business.
  • The legislation, known as Assembly Bill 5, would require gig economy workers to be reclassified as employees instead of contractors.
  • The bill has received support from California Gov. Gavin Newsom and would go into effect Jan. 1, 2020.
California lawmakers passed a landmark bill on Tuesday that threatens to reshape how companies like Uber and Lyft do business.

But shares of Lyft popped as much as 3.9% on Wednesday morning, while Uber climbed more than 2.9% after California Gov. Gavin Newsom told the Wall Street Journal on Wednesday that he’s still engaged in talks with Uber, Lyft and other gig economy companies about possible negotiations around the bill. Newsom recently voiced his support for the bill.

The legislation, known as Assembly Bill 5 (AB5), would require gig economy workers to be reclassified as employees instead of contractors. The bill passed in a 29 to 11 vote in the State Senate and now moves on to the State Assembly, where if it passes, it will land on Newsom’s desk.

Additionally, the bill has received broad support from Democratic Presidential candidates including Senators Elizabeth Warren (D-Mass.), Bernie Sanders (I-Vt.) and Kamala Harris (D-Calif.), as well as South Bend, Ind., Mayor Pete Buttigieg.

The bill has the potential to change the employment status of more than 1 million low-wage workers in California, not just gig workers at companies like Uber, Lyft, DoorDash, Postmates and Instacart. It will make it harder for gig economy companies to prove that their workers aren’t staff, while ensuring key benefits and protections, like minimum wage, insurance and sick days.

AB5 has attracted staunch opposition from gig economy companies, as it could upend their traditional business model of hiring inexpensive contractors. In an effort to push back against the bill, Uber and Lyft proposed establishing $21-an-hour minimum wage for drivers in California. The ride-hailing companies, as well as Doordash, have also pledged $90 million on a ballot initiative for the 2020 election that would exempt them from AB5.

Lyft spokesperson Adrian Durbin said the bill has the potential to hurt drivers who prefer a flexible work schedule
 
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AllenChicago

Well-Known Member
In much of private industry, when benefit increases are forced upon a company, or forced into implementation for the first time, employee pay is reduced accordingly.

What's the smallest percentage of fare you'll accept, in return for Health/Dental Insurance, 401K, etc..? In other words, how large of a pay cut will you accept?
 

Bob Reynolds

Well-Known Member
  • Thread Starter Thread Starter
  • #12
In much of private industry, when benefit increases are forced upon a company, or forced into implementation for the first time, employee pay is reduced accordingly.

What's the smallest percentage of fare you'll accept, in return for Health/Dental Insurance, 401K, etc..? In other words, how large of a pay cut will you accept?
The reason AB5 passed was because the pay was cut below poverty wages and there was nothing left to take from the drivers. So there will be no pay cuts at Uber and Lyft.

Now Lyft and Uber will have to pay at least the minimum wage plus driver vehicle expenses which the IRS says are .58 cents a mile. That is not a pay cut. That is a pay increase for the majority of the drivers.
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Whats this mean for the ride share drivers in the rest of the country?
Nothing for right now. The law just applies to California until other states pass similar laws.
 

Stevie The magic Unicorn

Well-Known Member
In much of private industry, when benefit increases are forced upon a company, or forced into implementation for the first time, employee pay is reduced accordingly.

What's the smallest percentage of fare you'll accept, in return for Health/Dental Insurance, 401K, etc..? In other words, how large of a pay cut will you accept?
By my estimation...

Min wage in Florida as an employee uber driver using his/her own car would equal $22.00 an hour.

Florida has a min wage of $8.46 an hour.

California?


Min wage in Francisco for an uber driver is closer to $28 an hour.

10 hours?

$280!


This isn't benefits, this is simply min wage free and clear of all deductions!

4 10s and your looking at $1120

50 weeks a year, 56,000.

Let's assume they have to pay OT.


Well it won't be double $28 an hour, only about $36 an hour.


But time and a half?

Yeah they only have to pay time and a half for actual labor, not in mileage reimbursements.


Truth is... after having freshly crunched the numbers their hourly costs might not even be 1.20 times higher for overtime, if they take benefits into the equation it might be cheaper to NOT cap it at 29.5 hours a week.

58c a mile + $15.00 an hour for the first 40 hours
THEN
58c a mile plu 22.50 per hour for every hour after that?

That sounds like a good incentive to get drivers on the road past 40 hours.


I'm not 100% sure on that math so, maybe?
 

Sal29

Active Member
At this point I almost want Uber, Lyft, and others to go out of business and be replaced by more humane companies kind of like The Costco of The Gig Economy.
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In much of private industry, when benefit increases are forced upon a company, or forced into implementation for the first time, employee pay is reduced accordingly.

What's the smallest percentage of fare you'll accept, in return for Health/Dental Insurance, 401K, etc..? In other words, how large of a pay cut will you accept?
They CAN'T REDUCE PAY because employees are ENTITLED TO MINIMUM WAGE AFTER EXPENSES. Uber/Lyft drives will have to make the minimum wage AFTER DEDUCTING 58 cents per mile.
If you drive 200 miles in 8 hours and make $116, then your income will be considered $0 and Uber will have to pay you minimum wage for 8 hours on top of those $116 you made. Uber and Lyft will try and claim that you're only working when you are on a trip, but California will geve Uber/Lyft another beating for the ages if they try and pull that BS. Uber/Lyft will have to pay overtime and other stuff too.
 
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Gerrygri11

New Member
By my estimation...
Min wage in Florida as an employee uber driver using his/her own car would equal $22.00 an hour.
Florida has a min wage of $8.46 an hour.
California?
Min wage in Francisco for an uber driver is closer to $28 an hour.
10 hours?
$280!
This isn't benefits, this is simply min wage free and clear of all deductions!
4 10s and your looking at $1120
50 weeks a year, 56,000.
Let's assume they have to pay OT
Well it won't be double $28 an hour, only about $36 an hour.
But time and a half?
Yeah they only have to pay time and a half for actual labor, not in mileage reimbursements
Truth is... after having freshly crunched the numbers their hourly costs might not even be 1.20 times higher for overtime, if they take benefits into the equation it might be cheaper to NOT cap it at 29.5 hours a week.
58c a mile + $15.00 an hour for the first 40 hours
THEN
58c a mile plu 22.50 per hour for every hour after that?
That sounds like a good incentive to get drivers on the road past 40 hours.
I'm not 100% sure on that math so, maybe?
Steve the problem is there's never gonna be benefits. The companies will cap all drive is below $30/hr Or whatever California minimum is for not having to pay benefits or overtime.
These companies were never meant to be full time jobs they were meant to be side gigs and they will do whatever they have to to keep them that way.
I've been driving over for 3 years I've never made less than $23 an hour in normally hover in the 27 to 36. Difference is I know my market I work Part And when IM not working that keeping an eye on the App so I can see where the busy locations are on a given day isI know will be in my market 45 minutes before Demand goes up.
All driversis can do this but uber and Lyft have to stop cutting rates they need to charge people a little bit more an be more transparent
 
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uberdriverfornow

Well-Known Member
Steve the problem is there's never gonna be benefits. The companies will cap all drive is below $30 a week Or whatever California minimum is for not having to pay benefits or overtime.
These companies were never meant to be full time jobs they were meant to be side gigs and they will do whatever they have to to keep them that way.
I've been driving over for 3 years I've never made less than $23 an hour in normally hover in the 27 to 36. Difference is I know my market I work Part And when IM not working that keeping an eye on the App so I can see where the busy locations are on a given day isI know will be in my market 45 minutes before Demand goes up.
All driversis can do this but uber and Lyft have to stop cutting rates they need to charge people a little bit more an be more transparent
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All employees get benefits. It doesn't matter how many hours each week they work. 30 hours, 2 hours, 25 hours, 48 hours, all get benefits.

You worry about the rates cuts coming to North Providence and let California start the trend of stopping rate cuts.
 
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