Big Law Partner Joins Lobbying Blitz Against Pro-Employee 'Dynamex' Bill
Monday's call was put together by a coalition of business organizations and companies, including Lyft and Uber, eager to keep their workers classified as independent contractors.
July 01, 2019 at 05:53 PM
4 minute read
Making ride-hailing drivers employees under California's wage-and-hour laws would be akin to “trying to fit a square peg into a round hole,” the head of Arnold & Porter Kaye Scholer's labor and employment group said Monday.
David Reis, speaking to reporters on a call organized by opponents of a bill to codify parts of the California Supreme Court's 2018 ruling in Dynamex, said the state's hours-based work statutes don't mesh with the flexibility that Lyft and Uber say their drivers want.
“We're dealing in a legislative employment law regime in California that is really quite rigid, quite paternalistic, [and] does not allow for the type of flexibility and economy that have become so attractive in the gig economy,” said Reis, a San Francisco-based partner. “And so trying to make these folks an employee and apply an employment regime that was based on the traditional employee is just not going to work.”
Opponents of the legislation have launched a lobbying and social media blitz as the bill races towards its final scheduled policy committee hearing next week. Uber and Lyft spent more than $336,000 combined on lobbying state policymakers in the first quarter of 2019, with AB 5 listed in public filings as one of the companies' main advocacy targets.
Monday's call was put together by a coalition of business organizations and companies, including Lyft and Uber, eager to keep their workers classified as independent contractors. The Dynamex decision, particularly if codified under Assembly Bill 5, would make it much more difficult for gig companies to avoid making their workers employees subject to the same overtime, meal-and-rest period and payday scheduling rules that apply to more traditional workplaces.
Reis was joined on the call by four ride-hailing drivers from around the state who said the provisions of Assembly Bill 5 would eliminate their ability to work when they want, care for loved ones and earn extra income to pay off bills.
The New York Times reported Saturday that large labor groups have been negotiating with Uber and Lyft over a possible deal to exempt ride-hailing drivers from AB 5's provisions. The bill's author, Assemblywoman Lorena Gonzalez, D-San Diego, responded Saturday by tweeting that the two companies “have yet to explain why we would ever exempt them out of #AB5 – not wanting to follow labor laws is NOT a valid reason.”
“I understand the difference between employment status, a real [collective bargaining agreement] & everything less,” Gonzalez said. “I did not run for office to sell out workers.”
Gonzalez and her allies have argued that California's employment laws do not bar employers from adopting flexible schedules for their workers.
The assemblywoman has taken amendments to exempt certain classes of professional workers, including licensed insurance agents, certain medical workers, lawyers, investment advisers, real estate licensees and hair stylists.
Reis, who is not representing Uber, Lyft or the employers' coalition, according to a coalition spokeswoman, said state payday laws would hurt gig workers who want to be paid in real time.
“Under the California Labor Code you have to designate in advance a payday and you have to have regular payday,” he said. “And so to pay somebody on a daily basis really wouldn't work under the current wage-and-hour laws.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllInsurers Dodge Sherwin-Williams' Claim for $102M Lead Paint Abatement Payment, State High Court Rules
What Does Ohio Supreme Court's Opioid Decision Mean for Public Nuisance Claims?
6 minute readMeet the Pacific Northwest Judges Who Rejected the Kroger-Albertsons Supermarket Merger
4 minute readTrending Stories
- 1High Court Revives Kleinbard's Bit to Collect $70K in Legal Fees From Lancaster DA
- 2AG Had No Authority to Take Control of Paterson PD, Appellate Division Says
- 3Deviation From Shared Custody Guidelines Requires More Than Common Sense
- 4Florida Pursues New Charge Against Trump Assassination Suspect
- 5Telefónica Maintains State Court Win in $623M Failed Merger Dispute
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250