Report: Coronavirus Rescue Bill Extends Unemployment Benefits to Gig Economy

The Associated Press
The Associated Press

Unemployment benefits will reportedly be extended to groups including gig economy workers like Uber drivers based on a bipartisan deal struck this week.

Axios reports that according to a statement from Senate Minority Leader Chuck Schumer (D-NY), unemployment benefits will be extended to groups including gig economy workers.

Such a move is an unprecedented expansion of benefits to gig economy workers who have been classified as independent contractors instead of employes by multiple companies such as ride-sharing firms Uber and Lyft. Uber CEO Dara Khosrowshahi sent a letter to President Trump earlier this week asking the government to include gig economy workers in the stimulus bill.

Khosrowshahi reportedly spoke with Schumer last week and reached out to the house to speak to House Speaker Nancy Pelosi and Senate Minority Leader Mitch McConnell although it is unclear if they spoke.

Schumer’s letter to Democratic senators stated that unemployment benefits would extend to four months, workers would receive normal benefits from their states as well as an additional $600 per week from the federal package. This would apply to employees, self-employed individuals, and gig economy workers.

Uber’s sudden support of the bill is surprising given that just a few months ago, the firm was filing lawsuits aimed at preventing a California law that would reclassify gig workers as employees from passing.

Breitbart News reported in December 2019:

The lawsuit, filed Monday in a Los Angeles federal court, claims that the law violates the U.S. Constitution because it singles out app-based gig workers and online companies for unfair treatment, according to multiple reports.

The companies claim that the law would deprive their drivers of the right to earn a living in the manner of their choosing. They also called it a “thinly veiled attempt” to target gig economy businesses.

“It irreparably harms network companies and app-based independent service providers by denying their constitutional rights to be treated the same as others to whom they are similarly situated,” the complaint states.

Silicon Valley tech giants have mobilized to combat the new law, which was known as AB5. and is set to take effect January 1. The law would potentially entitle gig workers to benefits and perks, like a minimum wage and sick pay.

Uber attorneys argued earlier this year that the law doesn’t apply to the company because drivers’ work falls  “outside the usual course of Uber’s business,” which they define as providing a technology platform.

The ridesharing company is joining forces with Lyft and Doordash to mount a $90 million counteroffensive against the new law.

Read the full article at Breitbart News here.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or email him at lnolan@breitbart.com

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