![]() Undeterred, Uber and Lyft have been pursuing several alternative attacks on the new law. The ride-share companies spent nearly $675,000 lobbying California lawmakers last summer fighting unsuccessfully for a carve-out from the legislation. Uber and Lyft have fought hard against AB5 for over a year. The California government has stated that this addition to California law is designed to prevent companies from settling individual misclassification claims while continuing broader worker misclassification practices. Not only does AB5 authorize California’s Attorney General and city attorneys in the state’s four biggest cities to sue companies for misclassifications, it empowers the government to obtain injunctive relief to prevent the continued misclassification of employees as independent contractors. (C) is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the company. (B) performs work that is outside the usual course of the company’s business and, (A) is free from the control and direction of the company in performing work, both practically and in the contractual agreement between the parties Under AB5, a California law that went into effect on January 1, 2020, workers are presumed to be employees unless the hiring entity proves that the worker: On May 5, 2020, California’s Attorney General and city attorneys for Los Angeles, San Diego, and San Francisco sued Uber and Lyft for misclassification of hundreds of thousands of California workers. ![]() This week, more shots were fired in the ongoing war over AB5.
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