FOX Business’ Gerri Willis reports on ride-sharing companies Uber and Lyft, which will be able to continue operating in California after receiving an order for emergency leave from a judge by profession.
Uber and Lyft have revamped their lobbying force in recent years as they face a potential death blow in California with the state’s Assembly Bill 5, which went into effect in January, demanding that the ridesharing giants become independent. classify contractors as employee.
Uber and Lyft initially violated the law, arguing that it did not apply to them, but a judge ruled on August 10 that companies should classify their contract managers as employees with full benefits, such as health insurance, workers’ compensation, and paid sick leave.
Drivers at Uber and Lyft said they would have to shut down the California shipping company as a result, but an appeals court gave the companies a temporary reprieve Thursday by delaying them from having to follow the order until next Tuesday.
LIFT, UBER RECEIVES EMERGENCY STAY AT CALIFORNIA OPERATIONS
Last year, when Assembly Bill 5 was debated in the California Congress, both Uber and Lyft spent seven figures each lobbying the state of California, according to a report in OpenSecrets, an arm of the nonprofit Center for Responsive Politics.
Both companies have also shifted their views to the federal government.
Uber brought $ 2.36 million in lobbying to the federal government in 2019, according to OpenSecrets, and is on track to spend that much this year – spending $ 1.2 million on lobbying by 2020.
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Uber has currently deployed 39 lobbyists, 33 of whom are “revolvers” – individuals who once worked for the government but now work for lobbying companies.
Lift spent less than Uber last year, putting only $ 930,000 into lobbying. But the company has almost spent that amount this year, spending $ 760,000 on lobbying work so far in 2020.
The ridesharing giants may have to lobby for even more of their money if Democratic presidential candidate Joe Biden wins in November.
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The former vice president has been routine expressed support for the California AB5 bill and says he would like to see a national version.
One bill that the so-called ‘gig economy’ would probably overhaul is the PRO law, or “Protect the Right to Organize Act.” The bill, which was passed in the House of Representatives in February, would ‘revise the definition of’ employee ‘and’ supervisor ‘to prevent employers from classifying employees as exempt from labor law protection. ‘Both Uber and Lyft have strongly lobbied against this bill.
One bill that has lobbied Uber and Lyft in favor is the NEW GIG Act, as “New Economy Works to Guarantee Independence and Growth Law.” The bill would draw up federal guidelines to determine whether a service provider should be classified as a full-time employee or an independent contractor.
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