Uber struck a defiant note Wednesday, saying that it won’t reclassify drivers as employees despite a California law expected to take effect in January that would dramatically change the status of gig workers in the state. According to the company, drivers fall “outside the usual course of Uber’s business.”
The ridesharing company’s top attorney said in a lengthy statement that Uber is exempt from the law’s requirements because drivers’ work falls “outside the usual course of Uber’s business.”
Uber views its business as “serving as a technology platform for several different types of digital marketplaces,” according to Tony West, the company’s chief legal officer.
“We continue to believe drivers are properly classified as independent,” he said, adding that “we’ll continue to be responsive to what the vast majority of drivers tell us they want most—flexibility.”
He said the company won’t automatically reclassify drivers as employees when the law is expected to go into effect in January.
California lawmakers passed Assembly Bill 5 (AB5) Wednesday and it is expected to be signed by Gov. Gavin Newsom. The law would require gig economy workers to be treated as employees rather than contractors, potentially entitling them to benefits and other perks.
Uber and competitor Lyft have adamantly opposed the measure, pledging to spend tens of millions of dollars to fight it. Uber has proposed a minimum wage for drivers, a move seen as an attempt to combat the California bill.
On Wednesday, Uber said it will continue to explore its legal and political options.
“We will continue advocating for a compromise agreement,” West said in the statement, adding that the company is encouraged by Gov. Newsom’s recent comments in the Wall Street Journal saying that he’s committed to negotiating a solution.
“But we are also pursuing several legal and political options, including working with Lyft and other Internet platform companies to lay the groundwork for a statewide ballot initiative in 2020.”
Uber said it will continue to respond to claims of misclassification in arbitration and in court as necessary.
“But we will also continue to advocate for the independence and choice that drivers tell us again and again in surveys, polls, focus groups, and personal conversations that they value most,” said West.
Uber recently laid off 435 of employees from its product and engineering teams. The layoffs represent about 8 percent of the organization, according to a recent report from TechCrunch.
The layoffs come after Uber eliminated about 400 individuals earlier this summer from its marketing department.
Uber has been reducing headcount since going public in May.
Follow David Ng on Twitter @HeyItsDavidNg. Have a tip? Contact me at dng@breitbart.com
COMMENTS
Please let us know if you're having issues with commenting.