In response to the recent new law in California, Uber said it will not convert its platform service partners into formal employees because the new law is not mandatory.
According to Uber's Chief Legal Counsel Tony West recentlyWhen interviewedIt stated that since the core of the company's operations is actually to match transportation needs rather than to generate commercial value from partner drivers, partner drivers will not be considered formal employees in accordance with existing laws.
The new labor bill "Assembly Bill 5 (AB5)" passed earlier in California requires companies to treat part-time and temporary workers as regular employees and provide them with the same benefits as regular employees, including a guaranteed minimum wage and unemployment insurance. This has caused services such as Uber to begin to face questions.
The bill is expected to take effect on January 2020, 1. Many believe that it may directly impact companies such as Uber and Lyft that generate revenue through a large number of temporary service workers.
However, Tony West's response is likely to draw a lot of criticism and may even lead to more legal charges. However, Tony West emphasized that Uber is accustomed to dealing with lawsuits. Uber's past development has clashed with existing laws, faced accusations from its partners and users, and the controversy surrounding its services, which has actually made Uber more familiar with legal proceedings.
In recent developments, Uber not only laid off 400 employees from its marketing team, but also announced earlier that it would lay off approximately 435 employees from its product and engineering teams. The company cited its desire to create a leaner, more efficient team. However, Uber is also facing pressure from its continued losses, leading many to speculate that the recent layoffs are driven by a desire to reduce financial expenses.
