With their business models threatened, DoorDash Inc., Lyft Inc. and Uber have said they’ll spend a combined $90 million on a campaign asking California voters to overturn the law in the next election. Lyft and Uber have each committed to turning a profit by the end of 2021, a promise that could be unattainable if they’re forced to reclassify workers in their home state.
SAN FRANCISCO: Uber Technologies Inc. and Postmates Inc. sued the state of California, alleging that a labor rights law set to go into effect this week is unconstitutional.
The lawsuit filed Monday in Los Angeles federal court is a preemptive strike against the state’s landmark measure designed to ensure gig workers receive employment protections.
Uber and Postmates argue the legislative process around California’s Assembly Bill 5 unfairly targeted gig economy companies while favoring other industries and that the law will threaten workers’ flexibility.
Limited time offer:
Just RM5 per month.
