New gig economy rule would kill 70,000 jobs, say Truckers California,

SACRAMENTO, Calif. – The California Trucking Association on Tuesday filed what seems to be the first lawsuit demanding a sweeping new labour law that strives to provide benefit and wage protections to employees in the so-called gig market, such as rideshare drivers in companies including Uber and Lyft.

The laws could deprive more than truckers of the capacity to operate and violates federal law, the association stated. Many would need to leave investments in trucks along with also the best way to put their agenda to comply infringes on interstate trade.

“Independent truckers are generally experienced drivers that have worked as workers and have, intentionally, struck out by themselves. We shouldn’t deprive them of the decision,” institution CEO Shawn Yadon stated in a statement.

The legislation set to take effect Jan. 1 which makes it tougher for businesses to classify employees as independent contractors rather than employees, that are eligible for minimum wage and benefits such as workers compensation.

“We anticipate large corporate interests — particularly those people who have misclassified their employees for decades — to take this struggle back to the area they know they could delay justice for employees: the courts,” the bill’s author, Democratic Assemblywoman Lorena Gonzalez of San Diego, said in a statement.

Her office said it the first litigation, though Lyft Uber and DoorDash have stated they’ll pay $90 million opposing the law when they can not negotiate principles. Uber said it defend that decision if necessary and will keep managing its drivers.

The legislation may impact home health aides and construction workers, janitors. However, the law’s impact on ridesharing and meal delivery motorists paid leave and has received the most attention since those firms do not provide benefits like health insurance and pay their drivers.

A judgment is implemented by the legislation this past year.

When deciding how to classify their employees, the court set up a three-prong evaluation to use. To be labeled a builder, a worker has to be free of control of the firm; doing work “beyond the typical course of their hiring entity’s company”; and participated in an independently established trade, business or occupation of the identical nature as the job they are doing.

The litigation has been filed in federal court in San Diego the exact same day the University of California, Berkeley, Labor Center estimated that the legislation will apply to almost two-thirds of independent contractors, such as truck and cab drivers, janitors and maids, retail employees, grounds maintenance workers and childcare workers.

Categories constitute another 9% jobs including dentists and physicians, attorneys, accountants and realtors.

A quarter of employees will be insured unless certain standards apply, the centre projected. They include sales agents, hairdressers and barbers, designers and artists, and building workers.

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