LOS ANGELES – Uber and Lyft received a temporary stay last week on driver re-classification. As litigation concerning Assembly Bill 5 (AB5) drags on, the fear of losing rides-haring services has increased.
“Uber and Lyft are threatening bold moves,” said Kitty Sveto, an attorney with Parris Law Firm in Lancaster, which is litigating similar cases against other gig-economy apps. “They are reframing by saying that Californians will no longer have rideshares available.”
San Diego Mayor Kevin Faulconer, a Republican, and San Jose Mayor Sam Liccardo, a Democrat, took the threat of losing ridesharing seriously, urging action to prevent Uber and Lyft from leaving California.
Attorney Kitty Sveto
| Contributed photo
“As the Republican and Democratic mayors of two of California's largest cities, we're calling for solutions so our state doesn’t shut down an industry that's vital to the income and livelihood of millions,” Faulconer tweeted on Aug. 19.
Mayor Liccardo concurred with his own Aug. 19 Twitter post.
“As bipartisan mayors of CA’s 2/3 largest cities, we share serious concern for the exodus of ride-share companies statewide. This Friday, nearly 1M gig workers will lose their income in the Golden State — deepening the economic pain felt in our communities during this crisis.”
Democratic Attorney General Xavier Becerra sued the rideshare companies after they did not comply with AB5, which required that drivers and other gig-economy workers be treated as employees and not independent contractors. But a ballot measure, known as Proposition 22, could be just the determining factor the ride-share companies need to turn the tide in their favor in November if enough voters choose to override AB5.
“What happens next in court is that there’s an expedited schedule and a hearing on Oct. 13,” Sveto told the Southern California Record. “Interestingly enough, the hearing is scheduled before the Nov. 3 elections when voters will vote on Proposition 22. So, there's a chance that the Court of Appeal will rule before the election.”
But for now, the court has asked the CEOs of Uber and Lyft to submit sworn statements confirming they have developed implementation plans to reclassify drivers as employees. Allies of Uber and Lyft took to social media to post how classifying independent drivers as employees will hurt workers.
For example, the California and Hawaii branch of the National Association for the Advancement of Colored People (NAACP) tweeted the following on Aug. 19.
“The flexible work offered by @uber and @lyft have helped countless people make ends meet, but a recent court order could cause them to halt operations in CA. Cutting off access to earn income when their schedules allow will put a lot more strain on budgets. #SaveCARideshare.”
The California State Sheriffs’ Association tweeted that Uber and Lyft help to keep drunk drivers off the road.
“Communities across CA are made safer by @Uber and @Lyft, helping keep impaired drivers off the road. If they’re forced to shut down, that means more drunk drivers and less safe communities. We need to #SaveCARideshare NOW!”
In an Aug. 22 Facebook post, California state Rep. Kevin Kiley (R-Roseville) called the law the “most malicious and harmful law ever passed in California,” and announced that he is circulating a petition as well as initiating a vote in the General Assembly to repeal AB5.
"[Gov.] Gavin Newsom and the legislature shut down Uber and Lyft, and they only remain in California at this moment by the grace of a judge’s emergency order issued late Thursday,” Kiley stated. “On Monday, I’m presenting Gov. Newsom and every legislator with a list of thousands of Californians who oppose their vicious AB5 law. You can add your name below. My legislation to repeal the law will be voted on this week before the legislature adjourns. AB5 has ruined more lives than any law in recent history. It not only banishes Uber and Lyft, but has already ended the livelihoods of Californians in literally hundreds of professions.”