Uber & Lyft Get an AB-5 Update: Business Casual

On this Business Casual segment, hosts Daniel Litwin and Tyler Kern outline how an already struggling ridesharing industry – Uber reports that it’s lost nearly $2 billion over the past three months – is facing a second reckoning.

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Officially codified in January, California Assembly Bill 5 looks to more equitably classify workers in the state as independent contractors or employees, helping, in theory, to curb unfair labor practices.

Rideshare companies like Uber and Lyft have been accused of engaging in those practices, avoiding classifying drivers as employees to reap the benefits of drivers being classified as contractors.

In May, three California cities filed a lawsuit against the company, claiming Uber was violating the new rules of AB-5, to re-classify their drivers as employees

This week, San Francisco Superior Court Judge Ethan Schulman ruled Uber, and Lyft, must comply with AB-5, which would guarantee benefits for drivers like overtime, paid sick leave and expense reimbursement.

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