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SAN FRANCISCO – A bill in California could force companies like Uber and Lyft to treat their drivers as employees rather than independent contractors.
But Uber and Lyft, who argue that changing the legal status of their drivers pose a fundamental threat to their businesses, announced Thursday that they would spend $ 60 million on a voting initiative that would exempt them from the proposed law.
Uber and Lyft drivers work as independent contractors. They connect to the company's applications and offer trips as they see fit. They do not have a legally protected minimum wage, guaranteed sick leave, or traditional health benefits.
Drivers have consistently complained that companies can reduce their revenues without explanation and have no recourse in case of application layoffs.
Bill 5, which could give employment status to drivers, goes to the California legislature. Uber and Lyft urged lawmakers to reach an agreement allowing them to continue to treat drivers as independent contractors.
Project sponsor Lorena Gonzalez, a Democratic member of the San Diego Assembly, said she did not want to provide a compromise with the relay companies.
California's legislative session ends in mid-September and the vote on the bill is expected before the end of the session. This means that time is running out for Uber and Lyft to close a deal.
The companies said their voting initiative would preserve drivers' ability to set their own schedules, while Uber and Lyft would offer a concession on minimum wage standards, health benefits and collective bargaining rights.
In an email to drivers urging them to contact their local lawmakers, Uber said it would guarantee a minimum wage of $ 21 per hour when a driver has a passenger or is about to take a passenger .
Uber and Lyft said they would each give $ 30 million to support their bid efforts. The relay companies have stated that their initiative, which has not yet been prepared, would preserve these wage concessions.
"As Plan B, we are reluctantly funding this initiative," said Tony West, Uber's chief legal officer, during an interview. "It's not our first choice. We would much prefer a historic deal beneficial to drivers, innovation and work. "
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Lyft officials still believe that they can reach an agreement with state officials, but they indicated that they were willing to submit the problem directly to voters.
"We are working on a solution that provides drivers with strong protections, including a revenue guarantee, a worker-centered transferable benefits system, and a unique industry-wide bargain, without compromising the flexibility that drivers tell us. that they enjoy so much. , Said Adrian Durbin, a spokesman for Lyft.
If Bill 5 of the Assembly becomes law, Uber will continue to plead employment complaints with its drivers, West said. "Just as we have done in the past decade, we will be pleading these cases," he said.
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