Listen: Uber is sued over resistance to California 'gig' employment law
"Uber now says it will not reclassify its drivers as employees in California in defiance of a new state law passed this week this law sets out strict rules for when companies labeled their workers as independent contractors rules which Uber and other GIG economy companies companies are widely acknowledged not to meet but uber asserts the new law does not apply to them plans a court fight and his pooling millions of dollars with lift and door dash cash to fund the campaign to ask California voters to decide the matter. Here's marketplace's Megan McCarthy Carino from our workplace culture desk employee status has has some pretty obvious pluses for Uber driver John Naf in Los Angeles. I'm an everyday driver. I spent like five thousand nine hundred something rise despite driving more than full time it currently doesn't have any benefits health insurance in years. I brush my teeth in Boston. Make sure you eat salads everyday securing benefits. It's like healthcare minimum wage and unemployment for drivers like NAF could be a game changer says Harry Campbell who runs the rideshare guy blog the full time drivers who are basically weekly working just like employees without any of the benefits I think they have the most to gain but the majority of drivers on the platforms aren't full-time according to his surveys surveys and data from Uber and lift. They're more like Robert Rodriguez fulltime tax preparer who just drives on the side about twenty hours a week just to unwind. Rodriguez is worried about becoming an employee. He's already gotten a message from lift that they could soon start scheduling shifts or requiring hours something that wouldn't work for him him while there's nothing in the law that would prevent the companies from maintaining flexible work arrangements keeping a large number of infrequent drivers just isn't sustainable sustainable with the increased cost of benefits payroll taxes and social security says Chris Thornberg of beacon economics so you would have to have people working more hours. There's and fewer of them. His firm worked on a report for lift that found the company would need to cut as many as two hundred seventy thousand drivers from the platform in California yeah if they switched to a full time employment model and that could have effects for consumers says Paul aware and economist at Stanford. I'm not sure that right sure as we've come to know enjoy it. It's going to continue to exist a report from Morgan. Stanley estimated fares could increase by up to twenty five percent for consumers and enjoy our says a smaller pool of more regular drivers means can take a little longer to find a ride"