Ride-share company Uber and on-demand meal delivery service Postmates filed a lawsuit Monday to block a broad new California law aimed at giving wage and benefit protections to people who work as independent contractors.
The lawsuit filed in U.S. court in Los Angeles argues that the law set to take effect Wednesday violates federal and state constitutional guarantees of equal protection and due process.
Uber said it will try to link the lawsuit to another legal challenge filed in mid-December by associations representing freelance writers and photographers.
The California Trucking Association filed the first challenge to the law in November on behalf of independent truckers.
The law creates the nation’s strictest test by which workers must be considered employees and it could set a precedent for other states.
The latest challenge includes two independent workers who wrote about their concerns with the new law.
“This has thrown my life and the lives of more than a hundred thousand drivers into uncertainty,” ride-share driver Lydia Olson’s wrote in a Facebook post cited by Uber.
On July 9, driver Pierre Finley showed his support for a California measure to limit when companies can label workers as independent contractor. (Rich Pedroncelli/The Associated Press)
Postmates driver Miguel Perez called on-demand work “a blessing” in a letter distributed by Uber. He said he used to drive a truck for 14 hours at a time, often overnight.
“Sometimes, when I was behind the wheel, with an endless shift stretching out ahead of me like the open road, I daydreamed about a different kind of job — a job where I could choose when, where and how much I worked and still make enough money to feed my family,” he wrote.
1 million workers without employee rights
The lawsuit contends that the law exempts some industries but includes ride-share and delivery companies without a rational basis for distinguishing between them. It alleges that the law also infringes on workers’ rights to choose how they make a living and could void their existing contracts.
Democratic Assemblywoman Lorena Gonzalez of San Diego countered that she wrote the law to extend employee rights to more than a million California workers who lack benefits, including a minimum wage, mileage reimbursements, paid sick leave, medical coverage and disability pay for on-the-job injuries.
She noted that Uber had previously sought an exemption when lawmakers were crafting the law, then said it would defend its existing labour model from legal challenges. It joined Lyft and DoorDash in a vow to each spend $30 million US to overturn the law at the ballot box in 2020 if they don’t win concessions from lawmakers next year.
“The one clear thing we know about Uber is they will do anything to try to exempt themselves from state regulations that make us all safer and their driver employees self-sufficient,” Gonzalez said in a statement. “In the meantime, Uber chief executives will continue to become billionaires while too many of their drivers are forced to sleep in their cars.”
The new law was a response to a legal ruling last year by the California Supreme Court regarding workers at the delivery company Dynamex.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
