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"content": "\u003cp>The California Supreme Court on Thursday upheld a law that allows app-based rideshare and delivery companies to treat their drivers as independent contractors instead of employees, handing a victory to the companies that put the initiative on the ballot in 2020.\u003c/p>\n\u003cp>The justices’ \u003ca href=\"https://www.courts.ca.gov/opinions/documents/S279622.PDF\">unanimous decision\u003c/a> focused on a clause in the industry-backed Proposition 22 that excluded app-based drivers from the state workers’ compensation system. The court declined to invalidate the law over a challenge brought by four drivers and the Service Employees International Union, which argued that Prop. 22 conflicted with the state Legislature’s constitutional powers to set those benefits.\u003c/p>\n\u003cp>The court found that the Legislature does not have the sole authority to govern the workers’ compensation system. The law “does not preclude the electorate from exercising its initiative power to legislate on matters affecting workers’ compensation,” Justice Goodwin Liu wrote in the ruling.\u003c/p>\n\u003cp>Uber, Lyft and Doordash, among other companies, spent more than $200 million to back Prop. 22, which was approved by 59% of voters in November 2020. The ballot initiative was in response to AB 5, a state law that made it more difficult to classify drivers as independent contractors.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Independent contractors are much cheaper for employers because they generally lack workers’ compensation coverage if injured on the job, overtime pay, and other protections afforded to employees. In the state, there are an estimated 1.4 million drivers working for DoorDash, Instacart, Lyft and Uber.\u003c/p>\n\u003cp>“California’s Supreme Court erred today by siding with multi-billion dollar corporations’ efforts to write their own laws to put profits over people,” Assemblymember Liz Ortega (D-San Leandro), who chairs the Assembly Labor Committee, said in a statement. “Being injured on the job shouldn’t mean that you and your family are placed in financial jeopardy, but that’s what workers face when corporations misclassify them to avoid employers’ responsibilities like workers’ compensation.”\u003c/p>\n\u003cp>Rory Little, a professor at UC Law San Francisco, told KQED that the ruling represents a big win for backers of Prop. 22, but it’s “not the end of the story.”\u003c/p>\n\u003cp>“This is a hot button issue. Not just in California, but all around the country,” he continued. “And so there’s going to be legislative efforts to address this further.”\u003c/p>\n\u003cp>Minutes after the court decision, Instacart applauded it as a “historic moment,” while Uber called it a “victory for drivers and democracy,” noting that 10 million voters supported Prop. 22.\u003c/p>\n\u003cp>“Whether drivers or couriers choose to earn just a few hours a week or more, their freedom to work when and how they want is now firmly etched into California law, putting an end to misguided attempts to force them into an employment model that they overwhelmingly do not want,” Uber said in a \u003ca href=\"https://www.uber.com/newsroom/prop-22-upheld/\">statement\u003c/a> posted on its website.\u003c/p>\n\u003cp>The justices’ ruling on Thursday did not address a clause in Proposition 22 that makes it all but impossible for lawmakers to change the law by requiring a seven-eighths supermajority vote for amendments.\u003c/p>\n\u003cp>\u003cem>KQED’s \u003ca href=\"https://www.kqed.org/author/rachael-myrow\">Rachael Myrow\u003c/a> contributed to this report. This is a developing story, and it will be updated.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Independent contractors are much cheaper for employers because they generally lack workers’ compensation coverage if injured on the job, overtime pay, and other protections afforded to employees. In the state, there are an estimated 1.4 million drivers working for DoorDash, Instacart, Lyft and Uber.\u003c/p>\n\u003cp>“California’s Supreme Court erred today by siding with multi-billion dollar corporations’ efforts to write their own laws to put profits over people,” Assemblymember Liz Ortega (D-San Leandro), who chairs the Assembly Labor Committee, said in a statement. “Being injured on the job shouldn’t mean that you and your family are placed in financial jeopardy, but that’s what workers face when corporations misclassify them to avoid employers’ responsibilities like workers’ compensation.”\u003c/p>\n\u003cp>Rory Little, a professor at UC Law San Francisco, told KQED that the ruling represents a big win for backers of Prop. 22, but it’s “not the end of the story.”\u003c/p>\n\u003cp>“This is a hot button issue. Not just in California, but all around the country,” he continued. “And so there’s going to be legislative efforts to address this further.”\u003c/p>\n\u003cp>Minutes after the court decision, Instacart applauded it as a “historic moment,” while Uber called it a “victory for drivers and democracy,” noting that 10 million voters supported Prop. 22.\u003c/p>\n\u003cp>“Whether drivers or couriers choose to earn just a few hours a week or more, their freedom to work when and how they want is now firmly etched into California law, putting an end to misguided attempts to force them into an employment model that they overwhelmingly do not want,” Uber said in a \u003ca href=\"https://www.uber.com/newsroom/prop-22-upheld/\">statement\u003c/a> posted on its website.\u003c/p>\n\u003cp>The justices’ ruling on Thursday did not address a clause in Proposition 22 that makes it all but impossible for lawmakers to change the law by requiring a seven-eighths supermajority vote for amendments.\u003c/p>\n\u003cp>\u003cem>KQED’s \u003ca href=\"https://www.kqed.org/author/rachael-myrow\">Rachael Myrow\u003c/a> contributed to this report. This is a developing story, and it will be updated.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>Ben Gwin says he received an email a few days ago from Google, instructing most company employees to work from home for the next month because of coronavirus concerns. Gwin, who works as a data analyst, is employed by HCL Technologies and is contracted to do work for Google in their Pittsburgh, Pennsylvania, satellite office. \u003c/p>\n\u003cp>And like many contractors at big tech firms, he does not get work-from-home privileges like Google employees.\u003c/p>\n\u003cp>A single dad who doesn’t want to risk getting sick, Gwin doesn’t have enough paid time off to stay home. \u003c/p>\n\u003cp>“What am I supposed to do?” he asks. \u003c/p>\n\u003cp>[aside label=\"Related Coverage\" postID=news_11741371,news_11806175]Gwin’s dilemma, one shared by millions of contract workers across the United States, underscores the stark disparities between full-time employees and contractors, especially at big tech firms.\u003c/p>\n\u003cp>Most employees at companies like Google and Facebook are given the flexibility to work from home — particularly when health concerns arise — and enjoy some of most generous paid time off plans of any labor force in the country. But a significant percentage of the workers at those companies are contractors, not employees, and receive vastly different wages and benefits. At Google for example, “TVCs,” or Temps, Vendors and Contractors, \u003ca href=\"https://www.nytimes.com/2019/05/28/technology/google-temp-workers.html\">account for about half of the company’s entire workforce\u003c/a> according to leaked documents obtained by the New York Times.\u003c/p>\n\u003cp>Gwin, who is technically employed by HCL Technologies, is among an army of white-collar contractors who sit alongside Google employees, often doing very similar jobs, but without the same benefits and pay packages. Most even wear different color badges to distinguish them from real Google employees.\u003c/p>\n\u003cp>Google says that if a temporary worker or vendor has approved remote access, they should feel free to work from home, according to a company statement. It adds that if an office is closed, Google will work with the contracting company to ensure its workers are compensated for those lost hours.\u003c/p>\n\u003cp>Gwin started working at Google, through HCL, a year and a half ago, and says he has repeatedly asked both companies for the flexibility to work from home.\u003c/p>\n\u003cp>What is most infuriating, he says, is how managers from both companies have denied his requests: HCL telling him it would violate Google policies, and Google directing him back to HCL.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“It’s really murky as far as who is making the decisions,” he says.\u003c/p>\n\u003cp>Gwin notes that it would be a huge benefit if he could work from home on occasion, like when his 12-year-old daughter is sick or needs him to take her to softball practice.\u003c/p>\n\u003cp>The coronavirus is compounding the frustration that many contractors like Gwin have long felt about the difference in treatment between them and full-time employees.\u003c/p>\n\u003cp>“This will be one of the more stark examples of the tiers and the classist system that is implemented at our building,” Gwin says. “We aren’t really sure what’s going to happen with us. Hopefully we’re allowed to work from home, or if it’s like a quarantine situation, we don’t have to give up a month’s worth of pay. I think a lot of people would just go to work if that was the situation.”\u003c/p>\n\u003cp>In a statement, HCL Technology says it’s “proactively invoking all required measures to ensure business continuity” as the outbreak intensifies.\u003c/p>\n\u003cp>A recent Google statement said that some contractors can work from home, but noted that “to serve our users and keep our products running, some work, performed by Google employees, temporary staff and vendors alike, can only be done by people physically present at offices. We’re taking all necessary and recommended precautions, including increased sanitization and social distancing, a public health best practice.”\u003c/p>\n\u003cp>Chris Tilly, a labor economist at UCLA, says white collar contracting is on the rise in a number of industries beyond just tech. It’s part of a trend he calls the “fissuring” of the workplace, where workers at the same company have increasingly different pay, benefits and privileges. \u003c/p>\n\u003cp>“These fissures undermine the U.S. safety net,” Tilly says, “which depends crucially on employment status, since contractors are considered self-employed and generally receive no benefits at all.”\u003c/p>\n\u003cp>The coronavirus outbreak is both highlighting and exacerbating some of the issues inherent in the fissured workplace, says Tilly. “An emergency situation like the current one worsens the impact of the inequities, and intensifies confusion and the complexities of mounting an effective response.”\u003c/p>\n\u003cp>At Google, Gwin hopes the current health crisis will prompt the company and other big tech firms to reconsider their contractor policies and allow workers like him to access the same work-from-home privileges that their own employees receive.\u003c/p>\n\u003cp>“I just want to be able to spend more time with my daughter,” Gwin says.\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Gwin’s dilemma, one shared by millions of contract workers across the United States, underscores the stark disparities between full-time employees and contractors, especially at big tech firms.\u003c/p>\n\u003cp>Most employees at companies like Google and Facebook are given the flexibility to work from home — particularly when health concerns arise — and enjoy some of most generous paid time off plans of any labor force in the country. But a significant percentage of the workers at those companies are contractors, not employees, and receive vastly different wages and benefits. At Google for example, “TVCs,” or Temps, Vendors and Contractors, \u003ca href=\"https://www.nytimes.com/2019/05/28/technology/google-temp-workers.html\">account for about half of the company’s entire workforce\u003c/a> according to leaked documents obtained by the New York Times.\u003c/p>\n\u003cp>Gwin, who is technically employed by HCL Technologies, is among an army of white-collar contractors who sit alongside Google employees, often doing very similar jobs, but without the same benefits and pay packages. Most even wear different color badges to distinguish them from real Google employees.\u003c/p>\n\u003cp>Google says that if a temporary worker or vendor has approved remote access, they should feel free to work from home, according to a company statement. It adds that if an office is closed, Google will work with the contracting company to ensure its workers are compensated for those lost hours.\u003c/p>\n\u003cp>Gwin started working at Google, through HCL, a year and a half ago, and says he has repeatedly asked both companies for the flexibility to work from home.\u003c/p>\n\u003cp>What is most infuriating, he says, is how managers from both companies have denied his requests: HCL telling him it would violate Google policies, and Google directing him back to HCL.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“It’s really murky as far as who is making the decisions,” he says.\u003c/p>\n\u003cp>Gwin notes that it would be a huge benefit if he could work from home on occasion, like when his 12-year-old daughter is sick or needs him to take her to softball practice.\u003c/p>\n\u003cp>The coronavirus is compounding the frustration that many contractors like Gwin have long felt about the difference in treatment between them and full-time employees.\u003c/p>\n\u003cp>“This will be one of the more stark examples of the tiers and the classist system that is implemented at our building,” Gwin says. “We aren’t really sure what’s going to happen with us. Hopefully we’re allowed to work from home, or if it’s like a quarantine situation, we don’t have to give up a month’s worth of pay. I think a lot of people would just go to work if that was the situation.”\u003c/p>\n\u003cp>In a statement, HCL Technology says it’s “proactively invoking all required measures to ensure business continuity” as the outbreak intensifies.\u003c/p>\n\u003cp>A recent Google statement said that some contractors can work from home, but noted that “to serve our users and keep our products running, some work, performed by Google employees, temporary staff and vendors alike, can only be done by people physically present at offices. We’re taking all necessary and recommended precautions, including increased sanitization and social distancing, a public health best practice.”\u003c/p>\n\u003cp>Chris Tilly, a labor economist at UCLA, says white collar contracting is on the rise in a number of industries beyond just tech. It’s part of a trend he calls the “fissuring” of the workplace, where workers at the same company have increasingly different pay, benefits and privileges. \u003c/p>\n\u003cp>“These fissures undermine the U.S. safety net,” Tilly says, “which depends crucially on employment status, since contractors are considered self-employed and generally receive no benefits at all.”\u003c/p>\n\u003cp>The coronavirus outbreak is both highlighting and exacerbating some of the issues inherent in the fissured workplace, says Tilly. “An emergency situation like the current one worsens the impact of the inequities, and intensifies confusion and the complexities of mounting an effective response.”\u003c/p>\n\u003cp>At Google, Gwin hopes the current health crisis will prompt the company and other big tech firms to reconsider their contractor policies and allow workers like him to access the same work-from-home privileges that their own employees receive.\u003c/p>\n\u003cp>“I just want to be able to spend more time with my daughter,” Gwin says.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>New year. New laws. Hundreds of them, ranging from a first-in-the-nation ban on the sale of new fur products, to measures aimed at easing the state’s extreme housing crunch and protecting private information online.\u003c/p>\n\u003cp>Here are some highlights of the new laws taking effect in California in 2020:\u003c/p>\n\u003ch3>\u003cstrong>Housing\u003c/strong>\u003c/h3>\n\u003cp>[aside label=\"Stories about CA's new rent cap law\" tag=\"ab-1482\"]\u003c/p>\n\u003cp>\u003cstrong>Rent Increase Cap: \u003c/strong> AB 1482 will limit annual rent increases by 5% plus inflation and require that landlords provide a “just cause” when evicting tenants who have been renting for a year or more.\u003c/p>\n\u003cp>\u003cstrong>Housing Crisis Act of 2019: \u003c/strong>Aimed at promoting higher density, SB 330 will prohibit local governments from down-zoning by either placing a moratorium on development or lowering the number of housing units permitted. It will also speed up the permitting process for development. The provision sunsets after five years.\u003c/p>\n\u003cp>\u003cstrong>Streamlining In-Law Units: \u003c/strong>AB 68 will make it easier for property owners to build Accessory Dwelling Units, commonly known as in-law units or granny flats.\u003c/p>\n\u003ch3>\u003cstrong>Health\u003c/strong>\u003c/h3>\n\u003cp>\u003cstrong>Health Care for Undocumented Immigrants:\u003c/strong> SB 104 will allow some undocumented young adults to receive health insurance through the state’s Medicaid program. The law is the first of its kind in the U.S.\u003c/p>\n\u003cp>\u003cstrong>Kaiser Transparency: \u003c/strong>SB 343 will require Kaiser Permanente to share more information on revenue and expenses at its facilities.\u003c/p>\n\u003ch3>Workplace\u003c/h3>\n\u003cp>[aside label=\"Stories about AB 5\" tag=\"independent-contractors\"]\u003c/p>\n\u003cp>\u003cstrong>Independent Worker Status: \u003c/strong>AB 5 aims to extend benefits and labor protections to workers in California’s “gig economy” by requiring companies to reclassify some workers as employees rather than independent contractors. Critics say the law could hurt workers outside of the gig economy, such as truck drivers and freelance reporters.\u003c/p>\n\u003cp>\u003cstrong>Hairstyle Discrimination:\u003c/strong> SB 188 bans racial discrimination in schools and workplaces for a person’s natural hairstyle. It’s the first law of its kind in the U.S.\u003c/p>\n\u003cp>\u003cstrong>Sexual Harassment Training: \u003c/strong>SB 1343, signed in 2018, requires that companies with at least five employees provide sexual harassment training to all employees.\u003c/p>\n\u003cp>\u003cstrong>Lactation Rooms:\u003c/strong> SB 142 expands protections for nursing mothers at work and requires employers to provide private lactation spaces that are not bathrooms.\u003c/p>\n\u003ch3>\u003cstrong>Policing\u003c/strong>\u003c/h3>\n\u003cp>[aside label=\"Related Stories\" tag=\"use-of-force\"]\u003c/p>\n\u003cp>\u003cstrong>Rape Kit Testing:\u003c/strong> SB 22 requires prompt testing of newly collected rape kits. Under the measure, new rape kits must be submitted for testing within 20 days and tested with 120 days.\u003c/p>\n\u003cp>\u003cstrong>Use of Force:\u003c/strong> SB 230 requires agencies to maintain a policy providing guidelines on the use of force. That policy must also include de-escalation techniques and other alternatives to force, in addition to specific guidelines for when deadly force can be used.\u003c/p>\n\u003cp>\u003cstrong>Facial Recognition:\u003c/strong> AB 1215 places a three-year ban on the use of facial recognition technology on body cameras by the state and local law enforcement agencies.\u003c/p>\n\u003ch3>Education\u003c/h3>\n\u003cp>\u003cstrong>Charter Schools:\u003c/strong> AB 1505 overhauls how the state authorizes charter schools. It will allow school districts to consider the impact to the community and the neighborhood schools when reviewing applications for new or expanded charter schools. It also requires charter school teachers to be credentialed.\u003c/p>\n\u003cp>\u003cstrong>Suspensions:\u003c/strong> SB 419 bans public and charter schools from suspending students in grades 4-8 for disruptive behavior. Existing law already prohibited suspending students in kindergarten and grades 1-3 for such behavior.\u003c/p>\n\u003ch3>Privacy\u003c/h3>\n\u003cp>[aside label=\"Related Stories\" tag=\"california-consumer-privacy-act\"]\u003c/p>\n\u003cp>\u003cstrong>Data Privacy Online: \u003c/strong>AB 325, known as the California Consumer Privacy Act, regulates data collection by companies like Facebook and Google. The measure aims to give Californians more control over their data by allowing them to see what personal information is being collected and prevent the sale of it.\u003c/p>\n\u003ch3>Wildfires\u003c/h3>\n\u003cp>\u003cstrong>Wildfire Warning Center: \u003c/strong>SB 209 establishes a wildfire warning center to better predict weather conditions and share information around the state.\u003c/p>\n\u003cp>\u003cstrong>Power Shutoffs: \u003c/strong>SB 167 requires that investor-owned utilities draft plans to lessen the negative effects of preemptive power outages aimed at preventing electric equipment from sparking fires.\u003c/p>\n\u003cp>\u003cstrong>Emergency Plans:\u003c/strong> SB 160 mandates that counties include “cultural competence” into emergency plans. It’s partially a response to elderly and non-English-speaking residents who missed emergency alerts during the state’s recent wildfires.\u003c/p>\n\u003ch3>Criminal Justice\u003c/h3>\n\u003cp>[aside label=\"Stories related to private prisons\" tag=\"private-prisons\"]\u003c/p>\n\u003cp>\u003cstrong>Child Sexual Abuse:\u003c/strong> AB 218 extends the statute of limitations for childhood sexual assault victims, allowing adults to report their abuse up until the age of 40.\u003c/p>\n\u003cp>\u003cstrong>Domestic Violence:\u003c/strong> SB 273 extends the statute of limitations for domestic violence to 5 years.\u003c/p>\n\u003cp>\u003cstrong>Private Prisons:\u003c/strong> AB 32 prohibits the state from entering into or renewing contracts with for-profit prison companies. The measure also phases out private facilities by 2028.\u003c/p>\n\u003ch3>Animal Welfare\u003c/h3>\n\u003cp>\u003cstrong>Fur Ban:\u003c/strong> AB 44 prohibits the sale and production of new fur products in California. The law is the first of its kind in the nation.\u003c/p>\n\u003cp>\u003cstrong>Circus Animals:\u003c/strong> SB 313 bans the use of wild animals in circus acts, including bears, elephants, tigers and monkeys.\u003c/p>\n\u003ch3>Environment\u003c/h3>\n\u003cp>\u003cstrong>Recycling Centers:\u003c/strong> AB 54 will bring temporary relief to cities feeling the bite from the sudden closure of recycling centers across the state. The measure provides $10 million for recycling centers and gives grocers a reprieve from paying some recycling fees.\u003c/p>\n\u003cp>\u003cstrong>Smoking in Parks: \u003c/strong>SB 8 prohibits smoking at state parks and beaches.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cp>\u003ca href=\"http://bit.ly/fiorefreelancers\" target=\"_blank\" rel=\"noopener noreferrer\">Freelance journalists sued California\u003c/a> over the new state law that targets companies who hire independent contractors.\u003c/p>\n\u003cp>The law, AB 5, is designed to force companies like Uber and Lyft to turn their vast army of independent contractors into employees.\u003c/p>\n\u003cp>According to the law, freelance journalists are limited to 35 submissions per client, per year before a client must consider them an employee.\u003c/p>\n\u003cp>I'm all for fully employed journalists, but it just doesn't seem realistic that all freelancers will magically become employees as the law seems to envision.\u003c/p>\n\u003cp>Full disclosure: I have worked for over 20 years as a freelance cartoonist and only recently became a part-time employee at KQED, largely because of this legislation.\u003c/p>\n\u003cp>That said, I think my story is an anomaly and I \u003cem>know\u003c/em> my career would have been cut short years ago had it been limited to the 35 submission cap.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cp>\u003cem>Updated: 3:45 p.m.\u003c/em>\u003c/p>\n\u003cp>Two national groups representing freelance writers and photographers on Tuesday filed the second legal challenge to California’s broad new labor law that aims to give wage and benefit protections to people who work as independent contractors.\u003c/p>\n\u003cp>While the public focus has been largely on ride-share companies such as Uber and Lyft, the lawsuit brought by the American Society of Journalists and Authors and the National Press Photographers Association says the law would unconstitutionally affect free speech and the media.\u003c/p>\n\u003cp>[aside postID='news_11773542,news_11774025,news_11769741' label='Understanding the New Independent Contractor Law']The law, AB 5, was \u003ca href=\"https://www.kqed.org/news/11773542/state-senate-passes-ab-5-bill-that-limits-who-can-be-classified-as-contractors\" target=\"_blank\" rel=\"noopener noreferrer\">passed by the state Legislature earlier this year\u003c/a> and is set to take effect Jan. 1. 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Their livelihoods are under threat.”\u003c/p>\n\u003cp>The lawsuit says the freelance restriction draws “unconstitutional content-based distinctions about who can freelance,” noting that “the government faces a heavy burden of justification when its regulations single out the press.”\u003c/p>\n\u003cp>“First, it was the Endangered Species Act, then women on corporate boards, and now the Pacific Legal Foundation is attacking California’s landmark workplace rights law. That should come as no surprise to anyone,” the bill’s author, Democratic Assemblywoman Lorena Gonzalez of San Diego, said in a statement.\u003c/p>\n\u003cp>Gonzalez also responded on Twitter to criticisms from some freelance reporters and photographers. \u003c/p>\n\u003cp>https://twitter.com/LorenaSGonzalez/status/1205310559211573249\u003c/p>\n\u003cp>https://twitter.com/LorenaSGonzalez/status/1205265427401601024\u003c/p>\n\u003cp>Attorney General Xavier Becerra, who is also named in the lawsuit did not respond to comment.\u003c/p>\n\u003cp>The Pacific Legal Foundation brought the lawsuit on behalf of the organizations and filed it in federal court in Los Angeles.\u003c/p>\n\u003cp>The two associations together have more than 650 members in California. Their lawsuit asks a judge to invalidate the portion of the law that would affect them.\u003c/p>\n\u003cp>The lawsuit was filed a day after the digital sports media company SB Nation, owned by Vox Media, \u003ca href=\"https://www.sbnation.com/2019/12/16/21024100/thank-you-california\" target=\"_blank\" rel=\"noopener noreferrer\">announced that it would end its use of more than 200 California freelancers\u003c/a>, switching instead to using a much smaller number of new employees.\u003c/p>\n\u003cp>The California law “makes it impossible for us to continue with our current California team site structure because it restricts contractors from producing more than 35 written content ‘submissions’ per year,” the company said on its website.\u003c/p>\n\u003cp>[aside postID='news_11777002']The new law implements \u003ca href=\"https://www.kqed.org/news/11769741/is-the-gig-up-what-dynamex-means-for-the-future-of-contracting-in-california\" target=\"_blank\" rel=\"noopener noreferrer\">a legal ruling last year\u003c/a> by the California Supreme Court regarding workers at the delivery company Dynamex. 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"content": "\u003cp>Over Labor Day, Gov. Gavin Newsom declared his \u003ca href=\"https://www.sacbee.com/opinion/article234624897.html\" target=\"_blank\" rel=\"noopener\">support\u003c/a> for a bill that would reclassify an estimated \u003ca href=\"https://calmatters.org/economy/2019/06/california-dynamex-gig-worker-classification-independent-contractors-uber-lyft-strippers-truckers-freelancers/\" target=\"_blank\" rel=\"noopener\">2 million\u003c/a> California workers as employees instead of independent contractors.\u003c/p>\n\u003cp>Powerful unions view \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB5\" target=\"_blank\" rel=\"noopener\">AB 5\u003c/a> as the year’s signature labor achievement, and the bill is expected to pass the state Senate next week – its last stop before heading to the governor’s desk.\u003c/p>\n\u003cp>But while \u003ca href=\"https://calmatters.org/blogs/california-election-2020/2019/08/elizabeth-warren-dynamex-califronia-gig-economy-presidential-primary/\">Democratic presidential candidates\u003c/a> have seized on labor standards of gig workers as a campaign issue, many questions remain about the bill’s implications, particularly for Uber and Lyft drivers in California, who number in the hundreds of thousands. Will they become employees when AB 5 becomes law? Will their pay go up? Will they lose flexibility?\u003c/p>\n\u003cp>Much of this remains in flux. Uber and Lyft say today’s on-demand economy calls for a new, first-in-the-nation framework, and they want California to forge it. Last week, major gig employers seeded \u003ca href=\"https://calmatters.org/economy/2019/08/with-no-carveout-in-hand-uber-lyft-doordash-pledge-90-million-to-california-ballot-fight/\">$90 million\u003c/a> for a new ballot measure unless lawmakers find a way to protect their business model. At the same time, the companies acknowledged their drivers deserve better pay, more benefits and \u003ca href=\"https://medium.com/uber-under-the-hood/moving-work-forward-in-california-7de60b6827b4\">greater representation\u003c/a>.\u003c/p>\n\u003cp>Democrats and labor leaders are working their way through this issue, which means even if AB 5 passes, negotiations will continue. On Wednesday, \u003ca href=\"https://www.politicopro.com/\">Politico\u003c/a> reported California Labor Federation Chief Officer Art Pulaski has been sharing a road map for how unions might cut through legal uncertainty in order to unionize gig workers. Newsom also says he’d like to craft something new, which would burnish his reputation as a friend to both tech and labor.\u003c/p>\n\u003cp>[pullquote size='medium' align='right' citation=\"Harry Campbell\"]‘It doesn’t take a rocket scientist to realize that if drivers were guaranteed a minimum wage, you wouldn’t be able to just flip the app on anytime from 10 a.m. to 3 p.m. because there would be way too many drivers and not enough rides.’[/pullquote]\u003c/p>\n\u003cp>But with days left in the current legislative session, political rhetoric continues to build. Here is what we know (and don’t know) so far about where things stand:\u003c/p>\n\u003cp>\u003cstrong>What happens to Uber and Lyft drivers if they are categorized as employees?\u003c/strong>\u003c/p>\n\u003cp>Depends on whom you ask. The companies say it would fundamentally change the ride-service industry’s hiring practices, forcing them to move to “on demand employment,” which has never been done.\u003c/p>\n\u003cp>It would likely mean the companies would take on fewer drivers and assign shifts much as a restaurant or retailer might schedule workers. The companies say that drivers would lose a primary attraction of the gig – flexibility.\u003c/p>\n\u003cp>“We would likely have to exert more control over drivers, telling them where to work, how to work and who they can work for,” Uber \u003ca href=\"https://medium.com/uber-under-the-hood/moving-work-forward-in-california-7de60b6827b4\">wrote recently\u003c/a>. “Uber would likely hire far fewer drivers than we currently support, and we’d likely have to require a minimum number of hours per week. Scheduling and rigid shifts would become the norm, and Uber would likely prevent drivers from working for other ride-share companies.”\u003c/p>\n\u003cp>The company says it would block drivers from signing on when the number of drivers outstrips demand, for example in a quiet neighborhood during off-peak hours. Uber and Lyft warn that riders could see higher costs and longer wait times. Riders in transit deserts, they warn, could lose service entirely.\u003c/p>\n\u003cp>Steve Smith, a spokesman for the \u003ca href=\"https://calaborfed.org/\">California Labor Federation\u003c/a>, called these scenarios a “corporate scare tactic” and said nothing prevents companies from maintaining flexibility.\u003c/p>\n\u003cfigure id=\"attachment_11772796\" class=\"wp-caption alignnone\" style=\"max-width: 1382px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/09/RIDESHARE-DRIVERS-photo-2.jpg\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11772796\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/09/RIDESHARE-DRIVERS-photo-2.jpg\" alt=\"\" width=\"1382\" height=\"922\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/09/RIDESHARE-DRIVERS-photo-2.jpg 1382w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/09/RIDESHARE-DRIVERS-photo-2-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/09/RIDESHARE-DRIVERS-photo-2-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/09/RIDESHARE-DRIVERS-photo-2-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/09/RIDESHARE-DRIVERS-photo-2-1200x801.jpg 1200w\" sizes=\"(max-width: 1382px) 100vw, 1382px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A man holds up a sign that says, ‘I don’t need a job, I just need customers,’ during a rally on on July 9, 2019, in opposition to AB 5. The bill that would change the way independent contractors are classified by their employers. \u003ccite>(Anne Wernikoff/CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In shifting to employee status, companies would have to offer basic worker protections such as guaranteed minimum wage, overtime pay, contributions to Social Security and Medicare, unemployment and disability insurance as well as workers’ compensation, sick leave and family leave. Workers could also get reimbursed for mileage and maintenance of their vehicles, which doesn’t currently happen.\u003c/p>\n\u003cp>Most likely there would be tradeoffs, wrote Harry Campbell, a Long Beach-based driver who authors \u003ca href=\"https://therideshareguy.com/ab5-end-of-rideshare/\">The Rideshare Guy\u003c/a> blog and podcast. Drivers, he predicts, will lose some flexibility and be prevented from driving more than 40 hours a week to avoid overtime, or even 30 hours a week to avoid healthcare benefits. There would be less incentive for Uber and Lyft to offer surge or dynamic pricing, which is now used as a financial incentive to encourage drivers to go where demand is high.\u003c/p>\n\u003cp>On the flip side, drivers would get at least the minimum wage plus mileage reimbursement. Another perk would be getting paid whether or not there’s a passenger in the vehicle, which doesn’t happen now.\u003c/p>\n\u003cp>“It doesn’t take a rocket scientist to realize that if drivers were guaranteed a minimum wage, you wouldn’t be able to just flip the app on anytime from 10 a.m. to 3 p.m.,” wrote Campbell, “because there would be way too many drivers and not enough rides.”\u003c/p>\n\u003cp>\u003cstrong>Remind me, what is the Dynamex decision?\u003c/strong>\u003c/p>\n\u003cp>Gig companies have been in a legal gray zone since the California Supreme Court issued the so-called \u003ca href=\"https://www.courts.ca.gov/opinions/archive/S222732.PDF\">Dynamex decision\u003c/a> last year making it harder to classify workers as independent contractors. The ruling established a three-part test, or ABC test, for certifying contractors, with the highest hurdle that the work performed must be outside the company’s core business.\u003c/p>\n\u003cp>AB 5 by Assemblywoman Lorena Gonzalez, a former labor organizer and a Democrat from San Diego, would codify the court’s decision into state law. From labor’s perspective, this forces gig companies to start paying their fair share of payroll taxes and contribute to disability and unemployment insurance funds for workers. If they don’t, AB 5 would allow state agencies, such as the Labor Commissioner, Franchise Tax Board and Employment Development Department, to enforce misclassification.\u003c/p>\n\u003cp>[aside label=\"related stories\" tag=\"dynamex\"]\u003c/p>\n\u003cp>Workers would also still be able to file their own lawsuits.\u003c/p>\n\u003cp>\u003cstrong>How soon might the shift happen?\u003c/strong>\u003c/p>\n\u003cp>Although AB 5 would take effect Jan. 1, 2020, don’t expect any immediate changes. Since the inception of Uber and Lyft, ride-hailing companies have spent millions in litigation and on settlements to try to keep drivers from being classified as employees. This fight is no different.\u003c/p>\n\u003cp>“If AB 5 passes, it’ll simply be a qualification of existing law,” \u003ca href=\"https://www.theverge.com/2019/9/2/20841070/uber-lyft-ab5-california-bill-drivers-labor\">said\u003c/a> Uber CEO Dara Khosrowshahi when asked during an earnings call about California’s effort to reclassify drivers. “It doesn’t immediately transform drivers into employees.”\u003c/p>\n\u003cp>In other words, expect the legal challenges and political haranguing to continue.\u003c/p>\n\u003cp>\u003cstrong>Is there a third way?\u003c/strong>\u003c/p>\n\u003cp>This is something to watch for. In the final week of session, Uber and Lyft are lobbying hard to get some kind of carve-out, and they are pitching a new construct as a win-win-win for the drivers, the gig employers and the state.\u003c/p>\n\u003cp>Letting gig workers remain independent contractors would end the costly legal battles Uber and Lyft have been waging for years over classification and let them work around AB 5. Allowing drivers the right to collective bargaining would, overnight, let unions add more than 200,000 members. And by crafting a third way, California would get to be a trailblazer in fighting for workers in the new economy.\u003c/p>\n\u003cp>\u003cstrong>How would gig workers unionize if they remain freelancers?\u003c/strong>\u003c/p>\n\u003cp>Good question. Right now there’s a discrepancy between the state’s Dynamex decision, which presumably would shift drivers from freelancers to employees, and the federal government’s treatment of gig workers as contractors, which makes them ineligible for the right to form a union.\u003c/p>\n\u003cp>In a confusing twist, Newsom says California could take advantage of this inconsistency.\u003c/p>\n\u003cp>“Only when the National Labor Relations Act does not cover workers may states act to provide the right to organize a union, allowing workers to bargain for better pay, benefits and working conditions,” he wrote.\u003c/p>\n\u003cp>Details are scarce but this follows the same logic Pulaski outlined, which calls for gig economy workers to be placed in a new category where they can remain freelancers but access collective bargaining powers.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003cstrong>Would everyone go for this?\u003c/strong>\u003c/p>\n\u003cp>Unclear. Labor unions have been split over whether gig companies should even get a carve-out. On one side, the Service Employees International Union and Teamsters have been willing \u003ca href=\"https://www.latimes.com/business/technology/la-fi-tn-dynamex-contractors-ab5-20190623-story.html\">to negotiate\u003c/a> an alternative in addition to AB 5, an acknowledgement that unions have to evolve with the changing economy.\u003c/p>\n\u003cp>But the \u003ca href=\"https://cabuildingtrades.org/\">State Building and Construction Trades Council of California\u003c/a> is refusing any concessions. Its leader, Robbie Hunter, was \u003ca href=\"https://calmatters.org/newsletter/fair-pay-pge-lobby-fight-dim-disclosure-death-on-the-streets-and-delta-tunnel/\">removed\u003c/a> from Newsom’s Future of Work Commission over the disagreement.\u003c/p>\n\u003cp>It’s easy to see why: The building trades is an umbrella organization that represents electricians, roofers, painters and a host of other skilled construction workers who currently enjoy prevailing wage, training and job protections. If those companies were allowed a carve-out, it could threaten to turn those careers into gigs.\u003c/p>\n\u003cp>\u003cstrong>What about everyone else impacted by AB 5?\u003c/strong>\u003c/p>\n\u003cp>With so much talk about Uber and Lyft, it’s worth remembering that AB 5 impacts more than gig workers. The bill would \u003ca href=\"https://calmatters.org/economy/2019/06/california-dynamex-gig-worker-classification-independent-contractors-uber-lyft-strippers-truckers-freelancers/\">sweep up\u003c/a> some workers across industries, from truck drivers and nail technicians to musicians and strippers.\u003c/p>\n\u003cp>Gonzalez has agreed to leave many workers out. Notably, she has granted exemptions to doctors, insurance agents, real estate agents, hair stylists, dentists, architects, engineers, accountants and barbers who hold booth rental permits.\u003c/p>\n\u003cp>She also has been making case-by-case concessions for travel agents, graphic designers, grant writers and marketing professionals. Newspaper publishers also have sought an industry exemption since many use freelance writers, photographers, editors and newspaper carriers. The latest version of AB 5 includes an exemption for freelancers as long as they contribute no more than 35 submissions a year.\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"http://calmatters.org/\">CalMatters.org\u003c/a> is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"excerpt": "California is poised to pass a sweeping labor bill that would turn drivers into employees. But gig companies are concerned about the implications and are demanding that lawmakers forge a new path.\r\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Over Labor Day, Gov. Gavin Newsom declared his \u003ca href=\"https://www.sacbee.com/opinion/article234624897.html\" target=\"_blank\" rel=\"noopener\">support\u003c/a> for a bill that would reclassify an estimated \u003ca href=\"https://calmatters.org/economy/2019/06/california-dynamex-gig-worker-classification-independent-contractors-uber-lyft-strippers-truckers-freelancers/\" target=\"_blank\" rel=\"noopener\">2 million\u003c/a> California workers as employees instead of independent contractors.\u003c/p>\n\u003cp>Powerful unions view \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB5\" target=\"_blank\" rel=\"noopener\">AB 5\u003c/a> as the year’s signature labor achievement, and the bill is expected to pass the state Senate next week – its last stop before heading to the governor’s desk.\u003c/p>\n\u003cp>But while \u003ca href=\"https://calmatters.org/blogs/california-election-2020/2019/08/elizabeth-warren-dynamex-califronia-gig-economy-presidential-primary/\">Democratic presidential candidates\u003c/a> have seized on labor standards of gig workers as a campaign issue, many questions remain about the bill’s implications, particularly for Uber and Lyft drivers in California, who number in the hundreds of thousands. Will they become employees when AB 5 becomes law? Will their pay go up? Will they lose flexibility?\u003c/p>\n\u003cp>Much of this remains in flux. Uber and Lyft say today’s on-demand economy calls for a new, first-in-the-nation framework, and they want California to forge it. Last week, major gig employers seeded \u003ca href=\"https://calmatters.org/economy/2019/08/with-no-carveout-in-hand-uber-lyft-doordash-pledge-90-million-to-california-ballot-fight/\">$90 million\u003c/a> for a new ballot measure unless lawmakers find a way to protect their business model. At the same time, the companies acknowledged their drivers deserve better pay, more benefits and \u003ca href=\"https://medium.com/uber-under-the-hood/moving-work-forward-in-california-7de60b6827b4\">greater representation\u003c/a>.\u003c/p>\n\u003cp>Democrats and labor leaders are working their way through this issue, which means even if AB 5 passes, negotiations will continue. On Wednesday, \u003ca href=\"https://www.politicopro.com/\">Politico\u003c/a> reported California Labor Federation Chief Officer Art Pulaski has been sharing a road map for how unions might cut through legal uncertainty in order to unionize gig workers. Newsom also says he’d like to craft something new, which would burnish his reputation as a friend to both tech and labor.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "‘It doesn’t take a rocket scientist to realize that if drivers were guaranteed a minimum wage, you wouldn’t be able to just flip the app on anytime from 10 a.m. to 3 p.m. because there would be way too many drivers and not enough rides.’",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>But with days left in the current legislative session, political rhetoric continues to build. Here is what we know (and don’t know) so far about where things stand:\u003c/p>\n\u003cp>\u003cstrong>What happens to Uber and Lyft drivers if they are categorized as employees?\u003c/strong>\u003c/p>\n\u003cp>Depends on whom you ask. The companies say it would fundamentally change the ride-service industry’s hiring practices, forcing them to move to “on demand employment,” which has never been done.\u003c/p>\n\u003cp>It would likely mean the companies would take on fewer drivers and assign shifts much as a restaurant or retailer might schedule workers. The companies say that drivers would lose a primary attraction of the gig – flexibility.\u003c/p>\n\u003cp>“We would likely have to exert more control over drivers, telling them where to work, how to work and who they can work for,” Uber \u003ca href=\"https://medium.com/uber-under-the-hood/moving-work-forward-in-california-7de60b6827b4\">wrote recently\u003c/a>. “Uber would likely hire far fewer drivers than we currently support, and we’d likely have to require a minimum number of hours per week. Scheduling and rigid shifts would become the norm, and Uber would likely prevent drivers from working for other ride-share companies.”\u003c/p>\n\u003cp>The company says it would block drivers from signing on when the number of drivers outstrips demand, for example in a quiet neighborhood during off-peak hours. Uber and Lyft warn that riders could see higher costs and longer wait times. Riders in transit deserts, they warn, could lose service entirely.\u003c/p>\n\u003cp>Steve Smith, a spokesman for the \u003ca href=\"https://calaborfed.org/\">California Labor Federation\u003c/a>, called these scenarios a “corporate scare tactic” and said nothing prevents companies from maintaining flexibility.\u003c/p>\n\u003cfigure id=\"attachment_11772796\" class=\"wp-caption alignnone\" style=\"max-width: 1382px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/09/RIDESHARE-DRIVERS-photo-2.jpg\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11772796\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/09/RIDESHARE-DRIVERS-photo-2.jpg\" alt=\"\" width=\"1382\" height=\"922\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/09/RIDESHARE-DRIVERS-photo-2.jpg 1382w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/09/RIDESHARE-DRIVERS-photo-2-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/09/RIDESHARE-DRIVERS-photo-2-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/09/RIDESHARE-DRIVERS-photo-2-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/09/RIDESHARE-DRIVERS-photo-2-1200x801.jpg 1200w\" sizes=\"(max-width: 1382px) 100vw, 1382px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A man holds up a sign that says, ‘I don’t need a job, I just need customers,’ during a rally on on July 9, 2019, in opposition to AB 5. The bill that would change the way independent contractors are classified by their employers. \u003ccite>(Anne Wernikoff/CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In shifting to employee status, companies would have to offer basic worker protections such as guaranteed minimum wage, overtime pay, contributions to Social Security and Medicare, unemployment and disability insurance as well as workers’ compensation, sick leave and family leave. Workers could also get reimbursed for mileage and maintenance of their vehicles, which doesn’t currently happen.\u003c/p>\n\u003cp>Most likely there would be tradeoffs, wrote Harry Campbell, a Long Beach-based driver who authors \u003ca href=\"https://therideshareguy.com/ab5-end-of-rideshare/\">The Rideshare Guy\u003c/a> blog and podcast. Drivers, he predicts, will lose some flexibility and be prevented from driving more than 40 hours a week to avoid overtime, or even 30 hours a week to avoid healthcare benefits. There would be less incentive for Uber and Lyft to offer surge or dynamic pricing, which is now used as a financial incentive to encourage drivers to go where demand is high.\u003c/p>\n\u003cp>On the flip side, drivers would get at least the minimum wage plus mileage reimbursement. Another perk would be getting paid whether or not there’s a passenger in the vehicle, which doesn’t happen now.\u003c/p>\n\u003cp>“It doesn’t take a rocket scientist to realize that if drivers were guaranteed a minimum wage, you wouldn’t be able to just flip the app on anytime from 10 a.m. to 3 p.m.,” wrote Campbell, “because there would be way too many drivers and not enough rides.”\u003c/p>\n\u003cp>\u003cstrong>Remind me, what is the Dynamex decision?\u003c/strong>\u003c/p>\n\u003cp>Gig companies have been in a legal gray zone since the California Supreme Court issued the so-called \u003ca href=\"https://www.courts.ca.gov/opinions/archive/S222732.PDF\">Dynamex decision\u003c/a> last year making it harder to classify workers as independent contractors. The ruling established a three-part test, or ABC test, for certifying contractors, with the highest hurdle that the work performed must be outside the company’s core business.\u003c/p>\n\u003cp>AB 5 by Assemblywoman Lorena Gonzalez, a former labor organizer and a Democrat from San Diego, would codify the court’s decision into state law. From labor’s perspective, this forces gig companies to start paying their fair share of payroll taxes and contribute to disability and unemployment insurance funds for workers. If they don’t, AB 5 would allow state agencies, such as the Labor Commissioner, Franchise Tax Board and Employment Development Department, to enforce misclassification.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Workers would also still be able to file their own lawsuits.\u003c/p>\n\u003cp>\u003cstrong>How soon might the shift happen?\u003c/strong>\u003c/p>\n\u003cp>Although AB 5 would take effect Jan. 1, 2020, don’t expect any immediate changes. Since the inception of Uber and Lyft, ride-hailing companies have spent millions in litigation and on settlements to try to keep drivers from being classified as employees. This fight is no different.\u003c/p>\n\u003cp>“If AB 5 passes, it’ll simply be a qualification of existing law,” \u003ca href=\"https://www.theverge.com/2019/9/2/20841070/uber-lyft-ab5-california-bill-drivers-labor\">said\u003c/a> Uber CEO Dara Khosrowshahi when asked during an earnings call about California’s effort to reclassify drivers. “It doesn’t immediately transform drivers into employees.”\u003c/p>\n\u003cp>In other words, expect the legal challenges and political haranguing to continue.\u003c/p>\n\u003cp>\u003cstrong>Is there a third way?\u003c/strong>\u003c/p>\n\u003cp>This is something to watch for. In the final week of session, Uber and Lyft are lobbying hard to get some kind of carve-out, and they are pitching a new construct as a win-win-win for the drivers, the gig employers and the state.\u003c/p>\n\u003cp>Letting gig workers remain independent contractors would end the costly legal battles Uber and Lyft have been waging for years over classification and let them work around AB 5. Allowing drivers the right to collective bargaining would, overnight, let unions add more than 200,000 members. And by crafting a third way, California would get to be a trailblazer in fighting for workers in the new economy.\u003c/p>\n\u003cp>\u003cstrong>How would gig workers unionize if they remain freelancers?\u003c/strong>\u003c/p>\n\u003cp>Good question. Right now there’s a discrepancy between the state’s Dynamex decision, which presumably would shift drivers from freelancers to employees, and the federal government’s treatment of gig workers as contractors, which makes them ineligible for the right to form a union.\u003c/p>\n\u003cp>In a confusing twist, Newsom says California could take advantage of this inconsistency.\u003c/p>\n\u003cp>“Only when the National Labor Relations Act does not cover workers may states act to provide the right to organize a union, allowing workers to bargain for better pay, benefits and working conditions,” he wrote.\u003c/p>\n\u003cp>Details are scarce but this follows the same logic Pulaski outlined, which calls for gig economy workers to be placed in a new category where they can remain freelancers but access collective bargaining powers.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003cstrong>Would everyone go for this?\u003c/strong>\u003c/p>\n\u003cp>Unclear. Labor unions have been split over whether gig companies should even get a carve-out. On one side, the Service Employees International Union and Teamsters have been willing \u003ca href=\"https://www.latimes.com/business/technology/la-fi-tn-dynamex-contractors-ab5-20190623-story.html\">to negotiate\u003c/a> an alternative in addition to AB 5, an acknowledgement that unions have to evolve with the changing economy.\u003c/p>\n\u003cp>But the \u003ca href=\"https://cabuildingtrades.org/\">State Building and Construction Trades Council of California\u003c/a> is refusing any concessions. Its leader, Robbie Hunter, was \u003ca href=\"https://calmatters.org/newsletter/fair-pay-pge-lobby-fight-dim-disclosure-death-on-the-streets-and-delta-tunnel/\">removed\u003c/a> from Newsom’s Future of Work Commission over the disagreement.\u003c/p>\n\u003cp>It’s easy to see why: The building trades is an umbrella organization that represents electricians, roofers, painters and a host of other skilled construction workers who currently enjoy prevailing wage, training and job protections. If those companies were allowed a carve-out, it could threaten to turn those careers into gigs.\u003c/p>\n\u003cp>\u003cstrong>What about everyone else impacted by AB 5?\u003c/strong>\u003c/p>\n\u003cp>With so much talk about Uber and Lyft, it’s worth remembering that AB 5 impacts more than gig workers. The bill would \u003ca href=\"https://calmatters.org/economy/2019/06/california-dynamex-gig-worker-classification-independent-contractors-uber-lyft-strippers-truckers-freelancers/\">sweep up\u003c/a> some workers across industries, from truck drivers and nail technicians to musicians and strippers.\u003c/p>\n\u003cp>Gonzalez has agreed to leave many workers out. Notably, she has granted exemptions to doctors, insurance agents, real estate agents, hair stylists, dentists, architects, engineers, accountants and barbers who hold booth rental permits.\u003c/p>\n\u003cp>She also has been making case-by-case concessions for travel agents, graphic designers, grant writers and marketing professionals. Newspaper publishers also have sought an industry exemption since many use freelance writers, photographers, editors and newspaper carriers. The latest version of AB 5 includes an exemption for freelancers as long as they contribute no more than 35 submissions a year.\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"http://calmatters.org/\">CalMatters.org\u003c/a> is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"slug": "is-the-gig-up-what-dynamex-means-for-the-future-of-contracting-in-california",
"title": "Is the 'Gig' Up? What Dynamex Means for the Future of Contracting in California",
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"content": "\u003cp>[dropcap]D[/dropcap]o you freelance in California? Have a side hustle? Drive trucks? Work on political campaigns? Then you may want to pay attention to a major employment fight coming to a head in Sacramento.\u003c/p>\n\u003cp>The state Legislature is currently considering \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB5\" target=\"_blank\" rel=\"noopener\">Assembly Bill 5\u003c/a>, which would make it harder to classify workers as independent contractors, officially codifying a sweeping 2018 California Supreme Court decision. The so-called \u003ca href=\"https://calmatters.org/articles/companies-beg-for-relief-from-pro-labor-gig-worker-ruling/\" target=\"_blank\" rel=\"noopener\">Dynamex bill\u003c/a>, supported by organized labor and named for the court case, has made headlines for threatening on-demand business models made popular by the likes of Uber, DoorDash and Postmates.\u003c/p>\n\u003cp>[pullquote size='medium' align='right' citation=\"Veena Dubal, UC Hastings law professor\"]‘It’s pretty clear that most workers in the gig economy need labor and employment law protections under California law.’[/pullquote]\u003c/p>\n\u003cp>Earlier this week, Lyft and Uber drivers caravaned across the state to show their support for the bill, \u003ca href=\"https://www.kqed.org/news/11770427/uber-lyft-drivers-rally-in-s-f-in-support-of-controversial-gig-employee-bill\">rallying\u003c/a> in front of Uber headquarters in San Francisco and calling for the right to unionize.\u003c/p>\n\u003cp>This Friday, the Senate Appropriations Committee is expected to decide whether the bill will advance further through the Legislature and face a vote on the Senate floor.\u003c/p>\n\u003cp>AB 5 could affect some 2 million workers in industries far from the so-called gig economy or the tech sector, from general contractors to \u003ca href=\"https://www.kqed.org/news/11737567/strippers-clash-over-employment-status-in-dueling-l-a-protests\" target=\"_blank\" rel=\"noopener\">strippers\u003c/a>. The proposed legislation would rewrite the rules not just for workers, but also for employers, like media outlets (including KQED), winemakers, private investigators or music schools.\u003c/p>\n\u003cp>“Does AB 5 have very wide repercussions? Yes, that’s what makes the negotiations very complicated,” said labor rights attorney Bill Sokol, who teaches employment law at San Francisco State University and is not a part of the negotiations.\u003c/p>\n\u003cp>[aside label=\"related stories\" tag=\"gig-economy\"]\u003c/p>\n\u003cp>AB 5 has put Gov. Gavin Newsom, who wants to be viewed as an ally to both labor and tech, \u003ca href=\"https://www.sfchronicle.com/politics/article/Gavin-Newsom-dodges-taking-a-stand-on-14047109.php?psid=4CZ4T\" target=\"_blank\" rel=\"noopener\">in an awkward position.\u003c/a>\u003c/p>\n\u003cp>Opposing the bill are mainstream businesses that have banded together with some in the gig economy to wage an \u003ca href=\"https://imindependent.co/\" target=\"_blank\" rel=\"noopener\">“I’m Independent”\u003c/a> campaign against it.\u003c/p>\n\u003cp>Lobbying heavily in favor of the bill is organized labor, which wants to see gig economy workers get workplace protections, including the right to collective bargaining.\u003c/p>\n\u003cp>California has long led the nation on employment practices, and the Dynamex bill may be just the beginning as policymakers wrestle with updating labor codes for a changing workplace.\u003c/p>\n\u003cp>“Everything is up for grabs,” Sokol said. “There’s no way to predict who’s going to end up with what. But labor recognizes that the American workplace they have traditionally organized — those worker relationships — have changed, and the laws have not kept up with them.”\u003c/p>\n\u003ch3>What was the Dynamex decision all about?\u003c/h3>\n\u003cp>The state Supreme Court decision in \u003ca href=\"https://www.courts.ca.gov/opinions/archive/S222732.PDF\" target=\"_blank\" rel=\"noopener\">Dynamex Operations West, Inc. v. Superior Court of Los Angeles\u003c/a> dealt with a same-day courier service that, to save money, had converted all its employees into independent contractors. A former employee claimed the shift was a state Labor Code violation, and the litigation that ensued ended up reinterpreting how workers are classified. The ruling established a three-part test for certifying independent contractors.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch4>The Dynamex ABC Test\u003cbr>\n\u003cbr>\u003c/h4>\n\u003cp>A) The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact; \u003cem>and\u003c/em>\u003c/p>\n\u003cp>B) The worker performs work that is outside the usual course of the hiring entity’s business; \u003cem>and\u003c/em>\u003c/p>\n\u003cp>C) The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hirer.\u003c/p>\n\u003c/aside>\n\u003cp>Even though the Dynamex decision is already law, labor representatives say many companies have been flouting it. AB 5 would ensure that workers would not have to file suit on a case-by-case basis to seek enforcement.\u003c/p>\n\u003cp>“There’s a whole bunch of things that they’re currently being cheated out of, frankly,” said Steve Smith with the Labor Federation. “With respect to Uber and Lyft, it’s the exploitation they subject their workers to on a daily basis. Many of these workers are not receiving minimum wage. They are misclassified as contractors when they actually should be considered employees, meaning there’s a whole host of benefits they’re not getting that they should get like everyone else.”\u003c/p>\n\u003cp>In steering more workers to employee status, the bill would force companies to offer basic worker protections that contractors don’t currently receive, such as guaranteed minimum wage, overtime pay, contributions to Social Security and Medicare, and unemployment and disability insurance. Those workers would also be eligible for workers’ compensation, sick and family leave and would be protected from discrimination at work, none of which are currently afforded to contractors.\u003c/p>\n\u003cp>“It’s a really important bill. States all over the country are watching to see what happens,” said Veena Dubal, a UC Hastings employment law professor, who spent several years representing San Francisco taxi drivers. “It’s pretty clear that most workers in the gig economy need labor and employment law protections under California law. … It’s vital that we have legal analysis that is clear both to businesses and workers so there’s less ambiguity.”\u003c/p>\n\u003cp>[pullquote size='medium' align='right' citation=\"Jennifer Barrera, California Chamber of Commerce\"]‘We have a huge group of individuals who really value their flexibility and control over their own schedule and I don’t think it has to be one or the other.’[/pullquote]\u003c/p>\n\u003cp>The state estimates it loses about \u003ca href=\"https://doc-0o-2c-apps-viewer.googleusercontent.com/viewer/secure/pdf/5kl0815j43d7pmccu5rm1nkdu5n97vtk/k78ohtjvmpriqu94toehk5vasugk1or8/1561398375000/gmail/12954669112312320069/ACFrOgCqTnPx2m9ygcyL_K7HjnqRWqbcoV4Y7z8aWyyKuEzX_tSdhj74hCCpDeNj8FN7h9FivoRreI\" target=\"_blank\" rel=\"noopener\">$7 billion\u003c/a> a year in payroll tax revenue due to worker misclassification — money that could be supporting schools, roads and other public services. And by avoiding unemployment insurance taxes and workers’ compensation premiums, businesses shift the burden to the state when workers get laid off, sick or injured on the job.\u003c/p>\n\u003cp>“These billion dollar companies can complain, but we have to ask ourselves as taxpayers: Should we subsidize their business by subsidizing their workers?” said Democratic Assemblywoman Lorena Gonzalez, a former labor organizer from San Diego who introduced the bill.\u003c/p>\n\u003cp>Gonzalez dismisses the idea, often touted by opponents, that Uber and Lyft will flee California if forced to reclassify their workers as employees. More likely, she predicts, Uber and Lyft will make the changes required by law because there’s a massive market for transporting individuals and goods in California, the fifth-largest economy in the world. And if they can’t swing it, then someone else will, she has said.\u003c/p>\n\u003ch3>Where do labor and business groups stand?\u003c/h3>\n\u003cfigure id=\"attachment_11769747\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11769747\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-1-800x1485.jpg\" alt=\"It's not just Uber and Lyft drivers whose jobs would be reclassified.\" width=\"800\" height=\"1485\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-1-800x1485.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-1-160x297.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-1-1020x1893.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-1-646x1200.jpg 646w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-1-1920x3564.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-1.jpg 1103w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">It’s not just Uber and Lyft drivers whose jobs would be reclassified. \u003ccite>(CALmatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Labor groups, led by the 2 million-member California Labor Federation, have united behind legislation. Their contention is that the gig economy has opened the door to mass exploitation of low-wage workers, a trend that is worsening income inequality.\u003c/p>\n\u003cp>But business advocates warn that the change would dramatically increase labor costs in California and have dire consequences for the state’s economy.\u003c/p>\n\u003cp>“We have a completely different economy,” said Jennifer Barrera, executive vice president of the California Chamber of Commerce. “We have a huge group of individuals who really value their flexibility and control over their own schedule and I don’t think it has to be one or the other.”\u003c/p>\n\u003cp>As for Uber and Lyft, the rideshare companies have sought compromise and held backchannel negotiations with the Teamsters and Service Employees International Union.\u003c/p>\n\u003cp>Their hope is to carve out a way to allow employers to grant some benefits without having to categorize workers as full employees.\u003c/p>\n\u003cp>In an \u003ca href=\"//www.sfchronicle.com/opinion/openforum/article/Open-Forum-Uber-Lyft-ready-to-do-our-part-for-13969843.php\">open letter\u003c/a>, Uber Chief Executive Dara Khosrowshahi and Lyft co-founders Logan Green and John Zimmer proposed maintaining their drivers’ freelance status but granting access to some employee benefits such as paid time off and retirement accounts. The executives, whose combined worth is over $1 billion, have also offered to form a new driver association to advocate for drivers’ interests.\u003c/p>\n\u003cp>“We are public companies that tens of millions of people rely on for mobility and work,” they wrote. “If there ever was a time for new policies, it’s now.”\u003c/p>\n\u003cfigure id=\"attachment_11770516\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11770516\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/08/RS38761__M6A2496-qut-1-800x502.jpg\" alt='Taking care of his mother and family, Uber and Lyft driver Malik Ali calls on Uber CEO Dara Khosrowshahi to help drivers keep a living wage. \"You see one driver but you don’t see the family behind. At least give us our share. I have to work every day, because of the strict rules for the driver, which is ripping us off. I can’t afford to miss days to pay my rent. They don’t see the family behind us.”' width=\"800\" height=\"502\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38761__M6A2496-qut-1-800x502.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38761__M6A2496-qut-1-160x100.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38761__M6A2496-qut-1-1020x640.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38761__M6A2496-qut-1-1200x753.jpg 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38761__M6A2496-qut-1.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Taking care of his mother and family, Uber and Lyft driver Malik Ali calls on Uber CEO Dara Khosrowshahi to help drivers keep a living wage. “You see one driver but you don’t see the family behind. At least give us our share. I have to work every day, because of the strict rules for the driver, which is ripping us off. I can’t afford to miss days to pay my rent. They don’t see the family behind us.” \u003ccite>(Sruti Mamidanna/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>On the other side are drivers like 62-year-old Ann Glatt, who joined the \u003ca href=\"https://www.gigworkersrising.org/\">Gig Workers Rising\u003c/a> movement after noticing her share of fares declining over time with Lyft. She said she was lucky to make $700 a week and would like to see changes to how drivers like herself are categorized.\u003c/p>\n\u003cp>“Teachers are in unions. We’re not able to unionize because we’re independent contractors,” Glatt said.\u003c/p>\n\u003cp>She added that how companies describe their drivers can be misleading.\u003c/p>\n\u003cp>“Uber and Lyft are not transportation companies — they are platforms,” she said. “So that makes us customers and the passengers are the end user. But really it kinda just means Uber and Lyft are not responsible for basic labor standards for people.”\u003c/p>\n\u003cp>In a follow-up interview, Glatt said she stopped driving for Lyft because she wasn’t able to make ends meet.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003ch3>What about more traditional industries?\u003c/h3>\n\u003cp>The impact of the Dynamex court ruling has been felt far more broadly than many Californians had expected, and AB 5 ‘s impact could be similarly widespread.\u003c/p>\n\u003cp>Gonzalez said she’s heard from newspaper publishers who want to keep using freelance journalists and beauty salons that rely on nail technicians. Her bill has even rattled folks in the world of politics, because it would reclassify campaign workers as employees instead of contractors.\u003c/p>\n\u003cp>Weighing in against the new rules are also representatives of the construction and trucking industries.\u003c/p>\n\u003cp>Peter Tateishi, CEO of the Associated General Contractors of California, which represents construction firms, said the bill would disadvantage small businesses, including many women-owned and minority-owned shops, because the builders that have long hired them as subcontractors won’t be able to do so anymore.\u003c/p>\n\u003cp>The trucking industry has \u003ca href=\"https://www.truckinginfo.com/328560/lawsuit-challenging-california-independent-contractor-rule-dismissed\" target=\"_blank\" rel=\"noopener\">challenged\u003c/a> the Dynamex decision in federal court, arguing that federal laws governing motor carriers preempt the state test.\u003c/p>\n\u003cfigure id=\"attachment_11769749\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11769749\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-3-800x1665.jpg\" alt=\"Business interests are pressing for more exemptions to AB 5.\" width=\"800\" height=\"1665\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-3-800x1665.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-3-160x333.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-3-1020x2123.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-3-576x1200.jpg 576w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-3-1920x3997.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-3.jpg 984w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Business interests are pressing for more exemptions to AB 5. \u003ccite>(CALmatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Chris Shimoda, vice president of government affairs for the California Trucking Association, says trucking has long been a career option for those without advanced degrees. About 80% of drivers in the industry have a high school education or less, he said.\u003c/p>\n\u003cp>But under Dynamex’s rules, truck drivers who own their own $150,000 Class 8 heavy duty trucks may start finding it difficult to get work.\u003c/p>\n\u003cp>“We all agree there should be a pathway, especially for the blue-collar working class to rise up the economic ladder,” Shimoda said. “If there are specific things that have been abused, then what are those and how do we reconcile that through this bill?”\u003c/p>\n\u003ch3>Will some industries be exempt?\u003c/h3>\n\u003cp>Lawmakers and lobbyists are continuing to negotiate the details of the Dynamex bill. So far, Gonzalez has agreed to exempt doctors, insurance and real estate agents, hair stylists and barbers who hold a booth rental permit, dentists, architects, engineers and accountants out of the law.\u003c/p>\n\u003cp>But business interests are pressing for more exemptions. Barrera of CalChamber said the organization would also like to carve out licensed occupations like court reporters and family therapists.\u003c/p>\n\u003cp>While Gonzalez said she intends to sort through more requests, the exemptions will need to stop at some point.\u003c/p>\n\u003cp>“I have a driver’s license,” she said. “That doesn’t make me a business owner.”\u003c/p>\n\u003cp>\u003cem>KQED’s Matthew Green contributed reporting to this article.\u003c/em>\u003c/p>\n\u003cp>\u003cem>CALmatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"excerpt": "A California bill threatens the likes of Uber, Lyft, Postmates and DoorDash. But Assembly Bill 5 could also sweep up some 2 million workers from truck drivers and general contractors to strippers and nail salons.",
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"title": "Is the 'Gig' Up? What Dynamex Means for the Future of Contracting in California | KQED",
"description": "A California bill threatens the likes of Uber, Lyft, Postmates and DoorDash. But Assembly Bill 5 could also sweep up some 2 million workers from truck drivers and general contractors to strippers and nail salons.",
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"headline": "Is the 'Gig' Up? What Dynamex Means for the Future of Contracting in California",
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"nprByline": "\u003ca href=\"https://calmatters.org/author/judy-lin/\">Judy Lin\u003c/a>\u003cbr>CalMatters",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003c/p>\u003cp>\u003cspan class=\"utils-parseShortcode-shortcodes-__dropcapShortcode__dropcap\">D\u003c/span>\u003c/p>\u003cp>o you freelance in California? Have a side hustle? Drive trucks? Work on political campaigns? Then you may want to pay attention to a major employment fight coming to a head in Sacramento.\u003c/p>\n\u003cp>The state Legislature is currently considering \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB5\" target=\"_blank\" rel=\"noopener\">Assembly Bill 5\u003c/a>, which would make it harder to classify workers as independent contractors, officially codifying a sweeping 2018 California Supreme Court decision. The so-called \u003ca href=\"https://calmatters.org/articles/companies-beg-for-relief-from-pro-labor-gig-worker-ruling/\" target=\"_blank\" rel=\"noopener\">Dynamex bill\u003c/a>, supported by organized labor and named for the court case, has made headlines for threatening on-demand business models made popular by the likes of Uber, DoorDash and Postmates.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "‘It’s pretty clear that most workers in the gig economy need labor and employment law protections under California law.’",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Earlier this week, Lyft and Uber drivers caravaned across the state to show their support for the bill, \u003ca href=\"https://www.kqed.org/news/11770427/uber-lyft-drivers-rally-in-s-f-in-support-of-controversial-gig-employee-bill\">rallying\u003c/a> in front of Uber headquarters in San Francisco and calling for the right to unionize.\u003c/p>\n\u003cp>This Friday, the Senate Appropriations Committee is expected to decide whether the bill will advance further through the Legislature and face a vote on the Senate floor.\u003c/p>\n\u003cp>AB 5 could affect some 2 million workers in industries far from the so-called gig economy or the tech sector, from general contractors to \u003ca href=\"https://www.kqed.org/news/11737567/strippers-clash-over-employment-status-in-dueling-l-a-protests\" target=\"_blank\" rel=\"noopener\">strippers\u003c/a>. The proposed legislation would rewrite the rules not just for workers, but also for employers, like media outlets (including KQED), winemakers, private investigators or music schools.\u003c/p>\n\u003cp>“Does AB 5 have very wide repercussions? Yes, that’s what makes the negotiations very complicated,” said labor rights attorney Bill Sokol, who teaches employment law at San Francisco State University and is not a part of the negotiations.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>AB 5 has put Gov. Gavin Newsom, who wants to be viewed as an ally to both labor and tech, \u003ca href=\"https://www.sfchronicle.com/politics/article/Gavin-Newsom-dodges-taking-a-stand-on-14047109.php?psid=4CZ4T\" target=\"_blank\" rel=\"noopener\">in an awkward position.\u003c/a>\u003c/p>\n\u003cp>Opposing the bill are mainstream businesses that have banded together with some in the gig economy to wage an \u003ca href=\"https://imindependent.co/\" target=\"_blank\" rel=\"noopener\">“I’m Independent”\u003c/a> campaign against it.\u003c/p>\n\u003cp>Lobbying heavily in favor of the bill is organized labor, which wants to see gig economy workers get workplace protections, including the right to collective bargaining.\u003c/p>\n\u003cp>California has long led the nation on employment practices, and the Dynamex bill may be just the beginning as policymakers wrestle with updating labor codes for a changing workplace.\u003c/p>\n\u003cp>“Everything is up for grabs,” Sokol said. “There’s no way to predict who’s going to end up with what. But labor recognizes that the American workplace they have traditionally organized — those worker relationships — have changed, and the laws have not kept up with them.”\u003c/p>\n\u003ch3>What was the Dynamex decision all about?\u003c/h3>\n\u003cp>The state Supreme Court decision in \u003ca href=\"https://www.courts.ca.gov/opinions/archive/S222732.PDF\" target=\"_blank\" rel=\"noopener\">Dynamex Operations West, Inc. v. Superior Court of Los Angeles\u003c/a> dealt with a same-day courier service that, to save money, had converted all its employees into independent contractors. A former employee claimed the shift was a state Labor Code violation, and the litigation that ensued ended up reinterpreting how workers are classified. The ruling established a three-part test for certifying independent contractors.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch4>The Dynamex ABC Test\u003cbr>\n\u003cbr>\u003c/h4>\n\u003cp>A) The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact; \u003cem>and\u003c/em>\u003c/p>\n\u003cp>B) The worker performs work that is outside the usual course of the hiring entity’s business; \u003cem>and\u003c/em>\u003c/p>\n\u003cp>C) The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hirer.\u003c/p>\n\u003c/aside>\n\u003cp>Even though the Dynamex decision is already law, labor representatives say many companies have been flouting it. AB 5 would ensure that workers would not have to file suit on a case-by-case basis to seek enforcement.\u003c/p>\n\u003cp>“There’s a whole bunch of things that they’re currently being cheated out of, frankly,” said Steve Smith with the Labor Federation. “With respect to Uber and Lyft, it’s the exploitation they subject their workers to on a daily basis. Many of these workers are not receiving minimum wage. They are misclassified as contractors when they actually should be considered employees, meaning there’s a whole host of benefits they’re not getting that they should get like everyone else.”\u003c/p>\n\u003cp>In steering more workers to employee status, the bill would force companies to offer basic worker protections that contractors don’t currently receive, such as guaranteed minimum wage, overtime pay, contributions to Social Security and Medicare, and unemployment and disability insurance. Those workers would also be eligible for workers’ compensation, sick and family leave and would be protected from discrimination at work, none of which are currently afforded to contractors.\u003c/p>\n\u003cp>“It’s a really important bill. States all over the country are watching to see what happens,” said Veena Dubal, a UC Hastings employment law professor, who spent several years representing San Francisco taxi drivers. “It’s pretty clear that most workers in the gig economy need labor and employment law protections under California law. … It’s vital that we have legal analysis that is clear both to businesses and workers so there’s less ambiguity.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "‘We have a huge group of individuals who really value their flexibility and control over their own schedule and I don’t think it has to be one or the other.’",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The state estimates it loses about \u003ca href=\"https://doc-0o-2c-apps-viewer.googleusercontent.com/viewer/secure/pdf/5kl0815j43d7pmccu5rm1nkdu5n97vtk/k78ohtjvmpriqu94toehk5vasugk1or8/1561398375000/gmail/12954669112312320069/ACFrOgCqTnPx2m9ygcyL_K7HjnqRWqbcoV4Y7z8aWyyKuEzX_tSdhj74hCCpDeNj8FN7h9FivoRreI\" target=\"_blank\" rel=\"noopener\">$7 billion\u003c/a> a year in payroll tax revenue due to worker misclassification — money that could be supporting schools, roads and other public services. And by avoiding unemployment insurance taxes and workers’ compensation premiums, businesses shift the burden to the state when workers get laid off, sick or injured on the job.\u003c/p>\n\u003cp>“These billion dollar companies can complain, but we have to ask ourselves as taxpayers: Should we subsidize their business by subsidizing their workers?” said Democratic Assemblywoman Lorena Gonzalez, a former labor organizer from San Diego who introduced the bill.\u003c/p>\n\u003cp>Gonzalez dismisses the idea, often touted by opponents, that Uber and Lyft will flee California if forced to reclassify their workers as employees. More likely, she predicts, Uber and Lyft will make the changes required by law because there’s a massive market for transporting individuals and goods in California, the fifth-largest economy in the world. And if they can’t swing it, then someone else will, she has said.\u003c/p>\n\u003ch3>Where do labor and business groups stand?\u003c/h3>\n\u003cfigure id=\"attachment_11769747\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11769747\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-1-800x1485.jpg\" alt=\"It's not just Uber and Lyft drivers whose jobs would be reclassified.\" width=\"800\" height=\"1485\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-1-800x1485.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-1-160x297.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-1-1020x1893.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-1-646x1200.jpg 646w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-1-1920x3564.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-1.jpg 1103w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">It’s not just Uber and Lyft drivers whose jobs would be reclassified. \u003ccite>(CALmatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Labor groups, led by the 2 million-member California Labor Federation, have united behind legislation. Their contention is that the gig economy has opened the door to mass exploitation of low-wage workers, a trend that is worsening income inequality.\u003c/p>\n\u003cp>But business advocates warn that the change would dramatically increase labor costs in California and have dire consequences for the state’s economy.\u003c/p>\n\u003cp>“We have a completely different economy,” said Jennifer Barrera, executive vice president of the California Chamber of Commerce. “We have a huge group of individuals who really value their flexibility and control over their own schedule and I don’t think it has to be one or the other.”\u003c/p>\n\u003cp>As for Uber and Lyft, the rideshare companies have sought compromise and held backchannel negotiations with the Teamsters and Service Employees International Union.\u003c/p>\n\u003cp>Their hope is to carve out a way to allow employers to grant some benefits without having to categorize workers as full employees.\u003c/p>\n\u003cp>In an \u003ca href=\"//www.sfchronicle.com/opinion/openforum/article/Open-Forum-Uber-Lyft-ready-to-do-our-part-for-13969843.php\">open letter\u003c/a>, Uber Chief Executive Dara Khosrowshahi and Lyft co-founders Logan Green and John Zimmer proposed maintaining their drivers’ freelance status but granting access to some employee benefits such as paid time off and retirement accounts. The executives, whose combined worth is over $1 billion, have also offered to form a new driver association to advocate for drivers’ interests.\u003c/p>\n\u003cp>“We are public companies that tens of millions of people rely on for mobility and work,” they wrote. “If there ever was a time for new policies, it’s now.”\u003c/p>\n\u003cfigure id=\"attachment_11770516\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11770516\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/08/RS38761__M6A2496-qut-1-800x502.jpg\" alt='Taking care of his mother and family, Uber and Lyft driver Malik Ali calls on Uber CEO Dara Khosrowshahi to help drivers keep a living wage. \"You see one driver but you don’t see the family behind. At least give us our share. I have to work every day, because of the strict rules for the driver, which is ripping us off. I can’t afford to miss days to pay my rent. They don’t see the family behind us.”' width=\"800\" height=\"502\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38761__M6A2496-qut-1-800x502.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38761__M6A2496-qut-1-160x100.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38761__M6A2496-qut-1-1020x640.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38761__M6A2496-qut-1-1200x753.jpg 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/RS38761__M6A2496-qut-1.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Taking care of his mother and family, Uber and Lyft driver Malik Ali calls on Uber CEO Dara Khosrowshahi to help drivers keep a living wage. “You see one driver but you don’t see the family behind. At least give us our share. I have to work every day, because of the strict rules for the driver, which is ripping us off. I can’t afford to miss days to pay my rent. They don’t see the family behind us.” \u003ccite>(Sruti Mamidanna/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>On the other side are drivers like 62-year-old Ann Glatt, who joined the \u003ca href=\"https://www.gigworkersrising.org/\">Gig Workers Rising\u003c/a> movement after noticing her share of fares declining over time with Lyft. She said she was lucky to make $700 a week and would like to see changes to how drivers like herself are categorized.\u003c/p>\n\u003cp>“Teachers are in unions. We’re not able to unionize because we’re independent contractors,” Glatt said.\u003c/p>\n\u003cp>She added that how companies describe their drivers can be misleading.\u003c/p>\n\u003cp>“Uber and Lyft are not transportation companies — they are platforms,” she said. “So that makes us customers and the passengers are the end user. But really it kinda just means Uber and Lyft are not responsible for basic labor standards for people.”\u003c/p>\n\u003cp>In a follow-up interview, Glatt said she stopped driving for Lyft because she wasn’t able to make ends meet.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003ch3>What about more traditional industries?\u003c/h3>\n\u003cp>The impact of the Dynamex court ruling has been felt far more broadly than many Californians had expected, and AB 5 ‘s impact could be similarly widespread.\u003c/p>\n\u003cp>Gonzalez said she’s heard from newspaper publishers who want to keep using freelance journalists and beauty salons that rely on nail technicians. Her bill has even rattled folks in the world of politics, because it would reclassify campaign workers as employees instead of contractors.\u003c/p>\n\u003cp>Weighing in against the new rules are also representatives of the construction and trucking industries.\u003c/p>\n\u003cp>Peter Tateishi, CEO of the Associated General Contractors of California, which represents construction firms, said the bill would disadvantage small businesses, including many women-owned and minority-owned shops, because the builders that have long hired them as subcontractors won’t be able to do so anymore.\u003c/p>\n\u003cp>The trucking industry has \u003ca href=\"https://www.truckinginfo.com/328560/lawsuit-challenging-california-independent-contractor-rule-dismissed\" target=\"_blank\" rel=\"noopener\">challenged\u003c/a> the Dynamex decision in federal court, arguing that federal laws governing motor carriers preempt the state test.\u003c/p>\n\u003cfigure id=\"attachment_11769749\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11769749\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-3-800x1665.jpg\" alt=\"Business interests are pressing for more exemptions to AB 5.\" width=\"800\" height=\"1665\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-3-800x1665.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-3-160x333.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-3-1020x2123.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-3-576x1200.jpg 576w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-3-1920x3997.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/08/DYNAMEX-GRAPHIC-3.jpg 984w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Business interests are pressing for more exemptions to AB 5. \u003ccite>(CALmatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Chris Shimoda, vice president of government affairs for the California Trucking Association, says trucking has long been a career option for those without advanced degrees. About 80% of drivers in the industry have a high school education or less, he said.\u003c/p>\n\u003cp>But under Dynamex’s rules, truck drivers who own their own $150,000 Class 8 heavy duty trucks may start finding it difficult to get work.\u003c/p>\n\u003cp>“We all agree there should be a pathway, especially for the blue-collar working class to rise up the economic ladder,” Shimoda said. “If there are specific things that have been abused, then what are those and how do we reconcile that through this bill?”\u003c/p>\n\u003ch3>Will some industries be exempt?\u003c/h3>\n\u003cp>Lawmakers and lobbyists are continuing to negotiate the details of the Dynamex bill. So far, Gonzalez has agreed to exempt doctors, insurance and real estate agents, hair stylists and barbers who hold a booth rental permit, dentists, architects, engineers and accountants out of the law.\u003c/p>\n\u003cp>But business interests are pressing for more exemptions. Barrera of CalChamber said the organization would also like to carve out licensed occupations like court reporters and family therapists.\u003c/p>\n\u003cp>While Gonzalez said she intends to sort through more requests, the exemptions will need to stop at some point.\u003c/p>\n\u003cp>“I have a driver’s license,” she said. “That doesn’t make me a business owner.”\u003c/p>\n\u003cp>\u003cem>KQED’s Matthew Green contributed reporting to this article.\u003c/em>\u003c/p>\n\u003cp>\u003cem>CALmatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"title": "‘Two-Tiered Caste System’: The World of White-Collar Contracting in Silicon Valley",
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"content": "\u003cp>Just because someone has a tech job in Silicon Valley, it doesn’t mean they are pulling in a high salary with loads of paid time off, piles of free food and private buses to shuttle them to and from work. Contract workers often don’t share in these perks, even if they’re doing white-collar jobs like developing software, analyzing data or running the servers these tech companies depend on.\u003c/p>\n\u003cp>“We’re right there looking through the glass at people having this sort of wondrous experience, given loads and loads of perks and benefits. But we don’t get any of it, even though we’re effectively doing the same work,” said one contract worker who did language processing at Google. Like all of the workers interviewed for this story, she asked to remain anonymous for fear of losing her job.\u003c/p>\n\u003cp>White-collar contractors often don’t work directly for tech companies but for third-party staffing firms. The workers typically earn less than their employee counterparts and have to pay for things like riding the shuttle — which is free for full-timers — to work. They may have limited access to the company campus, and aren’t invited to certain trips, parties and events.\u003c/p>\n\u003cp>“As a contractor you’re treated like you’re less than everyone else,” said a Latina who did contract work at both Salesforce and the e-cigarette company Juul.\u003c/p>\n\u003cp>The total number of contract workers in Silicon Valley is unknown. But experts, academics and labor advocates interviewed for this story estimated more than 100,000 white- and blue-collar contractors are working in tech, doing jobs ranging from janitorial work to programming.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003ch3>How and Why Silicon Valley Latched on to Contracting\u003c/h3>\n\u003cp>Since the late 1980s, companies nationwide have been switching their labor force over from employees to contractors. Contract workers are often cheaper than employees, they can be hired and fired more easily, and investors generally like to see lower employee headcounts. Silicon Valley has not only been part of this trend, but on the vanguard of it, said Chris Tilly, a UCLA professor who studies labor markets, inequality and public policy.\u003c/p>\n\u003cp>“Silicon Valley and the tech sector is definitely way out in front of most sectors when it comes to contracting,” Tilly said.\u003c/p>\n\u003cp>This is how it works in Silicon Valley: The companies go to a staffing firm with a bid and say, “Hey, we need X amount of workers for X price to do something like IT, build out a new division for, say, autonomous cars, or do our janitorial work,” said Pradeep Chauhan, who runs OnContracting — a rating and reviews website for workers to learn about conditions at different temp staffing agencies.\u003c/p>\n\u003cp>[pullquote size='medium' align='right' citation='Contract worker in Silicon Valley']‘It’s totally a two-tiered sort of caste system.’[/pullquote]\u003c/p>\n\u003cp>Chauhan said there are more than 1,000 staffing agencies in Silicon Valley. Some have more traditional names like “Mountain View Staffing” and “Palo Alto Staffing.” Others have gone the startup-type route with business names like Akraya. Many specialize in a particular kind of work like IT, security or transportation.\u003c/p>\n\u003cp>Tilly said in the investor-dependent, quick-pivot world of Silicon Valley, the advantages of the contractor model are even more valuable because it allows firms to quickly scale up and scale down projects with labor.\u003c/p>\n\u003cp>And, this model saves tech firms money in benefits, too, since it would cost a lot to give contractors the same generous packages used to attract high-skilled programmers and software developers, said Chauhan, who worked in staffing at Microsoft in the 1990s.\u003c/p>\n\u003cp>In older industries like auto manufacturing, unions guard against switching employees to contractors, but that’s not the case for new companies in Silicon Valley.\u003c/p>\n\u003cp>“These companies start out with a tabula rasa,” a blank slate, Tilly said.\u003c/p>\n\u003ch3>Stuck in Contracting for Years\u003c/h3>\n\u003cp>All of the temporary contract workers in this story hoped to move on or convert to employee status, but at most tech companies there is no direct path for them to do so. Companies like Google have policies that direct managers not to discuss the potential of converting to full-time work.\u003c/p>\n\u003cp>Part of the reason for this firm barrier between contractors and employees is legal protection from what are known as misclassification lawsuits. Chauhan said tech companies’ caution over misclassification issues started back at Microsoft.\u003c/p>\n\u003cp>In the early 1990s, Microsoft had hired lots of contractors to do everything from IT work to software development. Some of these workers got stuck in contracting roles for years and ended up filing a class-action lawsuit against Microsoft for how it was “permatemping” its workers. After almost a decade of battling the lawsuit, \u003ca href=\"https://www.computerworld.com/article/2589538/it-personnel-microsoft-to-pay-97-million-to-settle-permatemp-case.html\" target=\"_blank\" rel=\"noopener\">Microsoft settled for $97 million\u003c/a>.\u003c/p>\n\u003cp>“After Microsoft lost,” Chauhan said, “every contingent staffing department at every large company started setting up rules over how to best utilize contractors.”\u003c/p>\n\u003cp>Chauhan said that to avoid legal trouble, companies do two things: They require staffing agencies to offer some kind of benefit package to workers to make them feel like they’re employees of the agency, not the tech company. And the companies require short-term contracts, a year or 18 months at most, which means contractors never settle into a permanent job.\u003c/p>\n\u003cp>[pullquote size='small' align='right' citation='Contract worker in Silicon Valley who did language processing at Google']‘We’re right there looking through the glass at people having this sort of wondrous experience, given loads and loads of perks and benefits; but we don’t get any of it, even though we’re effectively doing the same work.’[/pullquote]\u003c/p>\n\u003cp>This leaves contract workers who want full-time work in a tricky position, with some believing they can break through if they try hard enough. One worker at Google said he was working overtime, even though he wasn’t supposed to.\u003c/p>\n\u003cp>“I’ve found myself working secretly after hours, trying to avoid my manager if they’re around,” he said.\u003c/p>\n\u003cp>This worker grew up in the Bay Area and recently became a contract worker in tech. He is hoping to jump to full-time employment and build a career in the industry. But in his first months on the job, he is concerned he is not doing enough work in his contract role to move to full time and that he may be let go.\u003c/p>\n\u003cp>“You feel like a full-time employee and you feel like you’re going to be evaluated as a full-time employee,” he said. “But on the books and in your paycheck and your benefits — and some of the way you’re treated — you’re not a full-time employee.”\u003c/p>\n\u003cp>[audio src=\"https://www.kqed.org/.stream/anon/radio/tcr/2019/04/ShadowWorkforceBadgesHarnettTCRAM.mp3\" title=\"Silicon Valley's Shadow Workforce\" program=\"KQED News\" image=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/05/RS8537_IMG_9782-scr-e1405355033607.jpg\"]\u003c/p>\n\u003cp>Many white-collar contract workers see full-time employment as the only way to have a decent life in the Bay Area.\u003c/p>\n\u003cp>A worker at a major Silicon Valley tech company has been waiting to get a full-time job so he can bring his pregnant wife and their young child — both who live in another country — to the U.S.\u003c/p>\n\u003cp>But after more than four years working contract to contract at different companies, it doesn’t look like he will land a full-time job soon.\u003c/p>\n\u003cp>“I’m willing to work really hard to eventually have a path for conversion,” he said. “As long as that’s possible, I’m going to keep trying. There’s nothing else I can do, really.” \u003c/p>\n\u003cp>[audio src=\"https://www.kqed.org/.stream/anon/radio/tcr/2019/04/ShawdowWorkforce4HarnettTCRAM.mp3\" title=\"Waiting to Work Full Time\" program=\"KQED News\" image=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/11/1928_transform.jpg\"]\u003c/p>\n\u003ch3>‘A Two-Tiered Caste System’\u003c/h3>\n\u003cp>One worker interviewed for this story had previously been an adjunct professor at an Ivy League university. Adjuncts receive far less pay than full professors and have limited to no job security; tenured professor jobs are difficult to come by.\u003c/p>\n\u003cp>The worker left for a tech job, hoping to find the kind of steady career path that wasn’t available in academia. She couldn’t believe the similarities.\u003c/p>\n\u003cp>“I found myself in effectively the same situation,” she said, “It’s totally a two-tiered sort of caste system.”\u003c/p>\n\u003cp>[audio src=\"https://www.kqed.org/.stream/anon/radio/tcr/2019/04/HarnettShadowWorkforce1.mp3\" title=\"Contracting White-Collar Workers\" program=\"KQED News\" image=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/02/GoogleWalkout.jpg\"]\u003c/p>\n\u003cp>A \u003ca href=\"https://news.ucsc.edu/2016/03/contract-worker-study.html\" target=\"_blank\" rel=\"noopener\">2016 study\u003c/a> of the contract workforce in Santa Clara County found deep racial and economic divides between contractors and full-time workers in the tech industry.\u003c/p>\n\u003cp style=\"font-weight: 400\">Latinos and African Americans are underrepresented in Silicon Valley and in the tech industry as a whole. Often when they do get jobs, they aren’t hired as employees, but instead brought on as contractors. You can see that reflected in the UC Santa Cruz study numbers in Santa Clara County.\u003c/p>\n\u003cp style=\"font-weight: 400\">The study found that while African Americans and Latinos make up only 7% of full-time employees, they account for 26% of white-collar contractors and 56% of blue-collar contractors. So, as you go from the preferred full-time jobs down to white-collar contractors and finally blue-collar contractors, you see fewer and fewer white workers and more and more African Americans and Latinos.\u003c/p>\n\u003cp style=\"font-weight: 400\">The study also found that contractors more often depend on public services and are vulnerable to homelessness, too, said Chris Benner, a professor of environmental studies and sociology who co-authored the study published by UC Santa Cruz.\u003c/p>\n\u003cp>The contract worker previously employed at Salesforce and Juul said that as a Latina she has experienced tech’s racial gap.\u003c/p>\n\u003cp>“The only people that I see that look like me, they’re cleaning up,” she said. “They’re doing custodial services. They’re at the front desk greeting people. They aren’t actually in the office.” \u003c/p>\n\u003cp>[audio src=\"https://www.kqed.org/.stream/anon/radio/tcr/2019/04/HarnettTechContractor2.mp3\" title=\"A Tech Caste System\" program=\"KQED News\" image=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/05/951945140.jpg\"]\u003c/p>\n\u003cp>\u003cstrong>Contract Workers Increasingly Voice Their Concerns\u003c/strong>\u003c/p>\n\u003cp>It’s hard for contract workers to organize: They often aren’t at companies long enough to form bonds with other workers and push for changes to the system. They also fear they could lose their jobs by speaking out.\u003c/p>\n\u003cp>Even so, some tech contractors have taken a stand: In 1998, Microsoft contractors formed WashTech/CWA to fight for higher pay and benefits. And in 2016, labor organizers succeeded in getting a union for bus drivers at tech companies like Facebook and Apple.\u003c/p>\n\u003cp>[aside tag='silicon-valley' label='Coverage of the Silicon Valley']\u003c/p>\n\u003cp>Today, contractors are speaking out through groups like Silicon Valley Rising and the Tech Workers Coalition. They’ve helped organize protests and published open letters to tech CEOs demanding better treatment. Some of the workers we spoke with for this story contacted us through these organizing groups.\u003c/p>\n\u003cp>Under increasing pressure from workers, tech companies have been addressing the contracting model. \u003ca href=\"https://thehill.com/policy/technology/436939-google-will-require-healthcare-parental-leave-for-extended-workforce\">In response to a letter demanding equal treatment\u003c/a> for contractors signed by Google employees, the company said it will require staffing firms to provide health insurance, 12 hours of paid parental leave and at least $15 an hour. Staffing agencies must comply by 2022.\u003c/p>\n\u003cp>At least one of the workers interviewed for this story succeeded in getting a full-time job. She is at a small company, different from where she did contract work, and is relieved to have some stability.\u003c/p>\n\u003cp>She wants to use her role as an employee to advocate for contractors.\u003c/p>\n\u003cp>“I’m hoping to tell people at my new company how important it is to treat their contractors with respect. How important benefits and sick time is for these workers.” She said “it’s hard to imagine changing a big tech company,” but she hopes she can stick her foot in the door where she can and push for small changes.\u003c/p>\n\u003ch3>How Tech Companies are Responding\u003c/h3>\n\u003cp>KQED asked 10 tech companies about their response to concerns from contract workers. Apple, Palantir, Salesforce and Juul did not respond, while Oracle and Microsoft declined to comment.\u003c/p>\n\u003cp>Starting in 2015, Facebook required vendor partners to provide a minimum set of benefits to “their employees,” a spokesperson said in an email. That includes 15 paid days off, $4,000 for new parents and a guaranteed $15 an hour minimum wage.\u003c/p>\n\u003cp>“We feel strongly that agencies should provide fair compensation and benefits for all contractors,” a Twitter spokesperson said in a statement. A Cisco representative made a similar comment, too.\u003c/p>\n\u003cp>Amazon said contractors made up a small part — a single-digit percentage — of the company’s U.S. workforce. Also, unlike many other tech firms, Amazon encourages contractors to apply for full-time roles — with nearly 1-in-4 such workers hired for permanent jobs in 2018.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Just because someone has a tech job in Silicon Valley, it doesn’t mean they are pulling in a high salary with loads of paid time off, piles of free food and private buses to shuttle them to and from work. Contract workers often don’t share in these perks, even if they’re doing white-collar jobs like developing software, analyzing data or running the servers these tech companies depend on.\u003c/p>\n\u003cp>“We’re right there looking through the glass at people having this sort of wondrous experience, given loads and loads of perks and benefits. But we don’t get any of it, even though we’re effectively doing the same work,” said one contract worker who did language processing at Google. Like all of the workers interviewed for this story, she asked to remain anonymous for fear of losing her job.\u003c/p>\n\u003cp>White-collar contractors often don’t work directly for tech companies but for third-party staffing firms. The workers typically earn less than their employee counterparts and have to pay for things like riding the shuttle — which is free for full-timers — to work. They may have limited access to the company campus, and aren’t invited to certain trips, parties and events.\u003c/p>\n\u003cp>“As a contractor you’re treated like you’re less than everyone else,” said a Latina who did contract work at both Salesforce and the e-cigarette company Juul.\u003c/p>\n\u003cp>The total number of contract workers in Silicon Valley is unknown. But experts, academics and labor advocates interviewed for this story estimated more than 100,000 white- and blue-collar contractors are working in tech, doing jobs ranging from janitorial work to programming.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003ch3>How and Why Silicon Valley Latched on to Contracting\u003c/h3>\n\u003cp>Since the late 1980s, companies nationwide have been switching their labor force over from employees to contractors. Contract workers are often cheaper than employees, they can be hired and fired more easily, and investors generally like to see lower employee headcounts. Silicon Valley has not only been part of this trend, but on the vanguard of it, said Chris Tilly, a UCLA professor who studies labor markets, inequality and public policy.\u003c/p>\n\u003cp>“Silicon Valley and the tech sector is definitely way out in front of most sectors when it comes to contracting,” Tilly said.\u003c/p>\n\u003cp>This is how it works in Silicon Valley: The companies go to a staffing firm with a bid and say, “Hey, we need X amount of workers for X price to do something like IT, build out a new division for, say, autonomous cars, or do our janitorial work,” said Pradeep Chauhan, who runs OnContracting — a rating and reviews website for workers to learn about conditions at different temp staffing agencies.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Chauhan said there are more than 1,000 staffing agencies in Silicon Valley. Some have more traditional names like “Mountain View Staffing” and “Palo Alto Staffing.” Others have gone the startup-type route with business names like Akraya. Many specialize in a particular kind of work like IT, security or transportation.\u003c/p>\n\u003cp>Tilly said in the investor-dependent, quick-pivot world of Silicon Valley, the advantages of the contractor model are even more valuable because it allows firms to quickly scale up and scale down projects with labor.\u003c/p>\n\u003cp>And, this model saves tech firms money in benefits, too, since it would cost a lot to give contractors the same generous packages used to attract high-skilled programmers and software developers, said Chauhan, who worked in staffing at Microsoft in the 1990s.\u003c/p>\n\u003cp>In older industries like auto manufacturing, unions guard against switching employees to contractors, but that’s not the case for new companies in Silicon Valley.\u003c/p>\n\u003cp>“These companies start out with a tabula rasa,” a blank slate, Tilly said.\u003c/p>\n\u003ch3>Stuck in Contracting for Years\u003c/h3>\n\u003cp>All of the temporary contract workers in this story hoped to move on or convert to employee status, but at most tech companies there is no direct path for them to do so. Companies like Google have policies that direct managers not to discuss the potential of converting to full-time work.\u003c/p>\n\u003cp>Part of the reason for this firm barrier between contractors and employees is legal protection from what are known as misclassification lawsuits. Chauhan said tech companies’ caution over misclassification issues started back at Microsoft.\u003c/p>\n\u003cp>In the early 1990s, Microsoft had hired lots of contractors to do everything from IT work to software development. Some of these workers got stuck in contracting roles for years and ended up filing a class-action lawsuit against Microsoft for how it was “permatemping” its workers. After almost a decade of battling the lawsuit, \u003ca href=\"https://www.computerworld.com/article/2589538/it-personnel-microsoft-to-pay-97-million-to-settle-permatemp-case.html\" target=\"_blank\" rel=\"noopener\">Microsoft settled for $97 million\u003c/a>.\u003c/p>\n\u003cp>“After Microsoft lost,” Chauhan said, “every contingent staffing department at every large company started setting up rules over how to best utilize contractors.”\u003c/p>\n\u003cp>Chauhan said that to avoid legal trouble, companies do two things: They require staffing agencies to offer some kind of benefit package to workers to make them feel like they’re employees of the agency, not the tech company. And the companies require short-term contracts, a year or 18 months at most, which means contractors never settle into a permanent job.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>This leaves contract workers who want full-time work in a tricky position, with some believing they can break through if they try hard enough. One worker at Google said he was working overtime, even though he wasn’t supposed to.\u003c/p>\n\u003cp>“I’ve found myself working secretly after hours, trying to avoid my manager if they’re around,” he said.\u003c/p>\n\u003cp>This worker grew up in the Bay Area and recently became a contract worker in tech. He is hoping to jump to full-time employment and build a career in the industry. But in his first months on the job, he is concerned he is not doing enough work in his contract role to move to full time and that he may be let go.\u003c/p>\n\u003cp>“You feel like a full-time employee and you feel like you’re going to be evaluated as a full-time employee,” he said. “But on the books and in your paycheck and your benefits — and some of the way you’re treated — you’re not a full-time employee.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Many white-collar contract workers see full-time employment as the only way to have a decent life in the Bay Area.\u003c/p>\n\u003cp>A worker at a major Silicon Valley tech company has been waiting to get a full-time job so he can bring his pregnant wife and their young child — both who live in another country — to the U.S.\u003c/p>\n\u003cp>But after more than four years working contract to contract at different companies, it doesn’t look like he will land a full-time job soon.\u003c/p>\n\u003cp>“I’m willing to work really hard to eventually have a path for conversion,” he said. “As long as that’s possible, I’m going to keep trying. There’s nothing else I can do, really.” \u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003ch3>‘A Two-Tiered Caste System’\u003c/h3>\n\u003cp>One worker interviewed for this story had previously been an adjunct professor at an Ivy League university. Adjuncts receive far less pay than full professors and have limited to no job security; tenured professor jobs are difficult to come by.\u003c/p>\n\u003cp>The worker left for a tech job, hoping to find the kind of steady career path that wasn’t available in academia. She couldn’t believe the similarities.\u003c/p>\n\u003cp>“I found myself in effectively the same situation,” she said, “It’s totally a two-tiered sort of caste system.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>A \u003ca href=\"https://news.ucsc.edu/2016/03/contract-worker-study.html\" target=\"_blank\" rel=\"noopener\">2016 study\u003c/a> of the contract workforce in Santa Clara County found deep racial and economic divides between contractors and full-time workers in the tech industry.\u003c/p>\n\u003cp style=\"font-weight: 400\">Latinos and African Americans are underrepresented in Silicon Valley and in the tech industry as a whole. Often when they do get jobs, they aren’t hired as employees, but instead brought on as contractors. You can see that reflected in the UC Santa Cruz study numbers in Santa Clara County.\u003c/p>\n\u003cp style=\"font-weight: 400\">The study found that while African Americans and Latinos make up only 7% of full-time employees, they account for 26% of white-collar contractors and 56% of blue-collar contractors. So, as you go from the preferred full-time jobs down to white-collar contractors and finally blue-collar contractors, you see fewer and fewer white workers and more and more African Americans and Latinos.\u003c/p>\n\u003cp style=\"font-weight: 400\">The study also found that contractors more often depend on public services and are vulnerable to homelessness, too, said Chris Benner, a professor of environmental studies and sociology who co-authored the study published by UC Santa Cruz.\u003c/p>\n\u003cp>The contract worker previously employed at Salesforce and Juul said that as a Latina she has experienced tech’s racial gap.\u003c/p>\n\u003cp>“The only people that I see that look like me, they’re cleaning up,” she said. “They’re doing custodial services. They’re at the front desk greeting people. They aren’t actually in the office.” \u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Today, contractors are speaking out through groups like Silicon Valley Rising and the Tech Workers Coalition. They’ve helped organize protests and published open letters to tech CEOs demanding better treatment. Some of the workers we spoke with for this story contacted us through these organizing groups.\u003c/p>\n\u003cp>Under increasing pressure from workers, tech companies have been addressing the contracting model. \u003ca href=\"https://thehill.com/policy/technology/436939-google-will-require-healthcare-parental-leave-for-extended-workforce\">In response to a letter demanding equal treatment\u003c/a> for contractors signed by Google employees, the company said it will require staffing firms to provide health insurance, 12 hours of paid parental leave and at least $15 an hour. Staffing agencies must comply by 2022.\u003c/p>\n\u003cp>At least one of the workers interviewed for this story succeeded in getting a full-time job. She is at a small company, different from where she did contract work, and is relieved to have some stability.\u003c/p>\n\u003cp>She wants to use her role as an employee to advocate for contractors.\u003c/p>\n\u003cp>“I’m hoping to tell people at my new company how important it is to treat their contractors with respect. How important benefits and sick time is for these workers.” She said “it’s hard to imagine changing a big tech company,” but she hopes she can stick her foot in the door where she can and push for small changes.\u003c/p>\n\u003ch3>How Tech Companies are Responding\u003c/h3>\n\u003cp>KQED asked 10 tech companies about their response to concerns from contract workers. Apple, Palantir, Salesforce and Juul did not respond, while Oracle and Microsoft declined to comment.\u003c/p>\n\u003cp>Starting in 2015, Facebook required vendor partners to provide a minimum set of benefits to “their employees,” a spokesperson said in an email. That includes 15 paid days off, $4,000 for new parents and a guaranteed $15 an hour minimum wage.\u003c/p>\n\u003cp>“We feel strongly that agencies should provide fair compensation and benefits for all contractors,” a Twitter spokesperson said in a statement. A Cisco representative made a similar comment, too.\u003c/p>\n\u003cp>Amazon said contractors made up a small part — a single-digit percentage — of the company’s U.S. workforce. Also, unlike many other tech firms, Amazon encourages contractors to apply for full-time roles — with nearly 1-in-4 such workers hired for permanent jobs in 2018.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"info": "Our flagship program, helmed by Kai Ryssdal, examines what the day in money delivered, through stories, conversations, newsworthy numbers and more. Updated Monday through Friday at about 3:30 p.m. PT.",
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"info": "For decades, the process for how police police themselves has been inconsistent – if not opaque. In some states, like California, these proceedings were completely hidden. After a new police transparency law unsealed scores of internal affairs files, our reporters set out to examine these cases and the shadow world of police discipline. On Our Watch brings listeners into the rooms where officers are questioned and witnesses are interrogated to find out who this system is really protecting. Is it the officers, or the public they've sworn to serve?",
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"info": "Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.",
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"soldout": {
"id": "soldout",
"title": "SOLD OUT: Rethinking Housing in America",
"tagline": "A new future for housing",
"info": "Sold Out: Rethinking Housing in America",
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},
"tech-nation": {
"id": "tech-nation",
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