Backed by Uber, Lyft, and food delivery apps such as Postmates, Proposition 22 exempts app-based drivers from Assembly Bill 5, the California law that created a stricter criteria for independent contractors.
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In California, Uber has implemented changes to comply with the new law that requires gig economy workers to be reclassified as employees rather than contractors.
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Supporters of AB 5 have said that the legislation is necessary, as some companies have exploited workers for decades under unfair labor contracts.
Read More →The policy comes amid driver-led protests outside Uber's San Francisco's headquarters.
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A case brought against Uber by Los Angeles-based Diva Limousine argues that Uber's business model — as it pertains to drivers — financially harms its competitors.
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