taxi Service Uber and the delivery company Postmates has filed a lawsuit against California, arguing that new labor law of the state, which considers freelancers as permanent employees of the company, is unconstitutional.
Legislation known as Bill No. 5 of the Assembly, which shall come into effect on Wednesday, will mean that - under certain conditions - independent contractors are classified as regular employees and paid the minimum wage and health insurance, which entail the payment of all required in such cases taxes.
This will break the business scheme, Uber, and Postmates that work with their drivers on a one-off agreements.
"the Plaintiffs are ready to defend your constitutional rights and defend their basic freedom to pursue their chosen work as independent service providers and technology companies in the economy on demand," - said in the lawsuit the companies filed on Monday.
we will Remind that in Ukraine are also developing a new labor law that offers a clear definition of the employment relationship in the case that the company is working with Fapmi. According to the Minister of economic development and agriculture of Ukraine Timofey Milovanov, the absence in the Code of laws on labor (Kzot) a clear definition of the employment relationship "allows to create problems for businesses during inspections and worsens workers 'rights".
If the changes are accepted, the Uber drivers and other taxi services in Ukraine may also fall under the definition of regular employee, with all the ensuing consequences.
