Uber And Postmates Sue California Over New Labor Law
Uber and Postmates sued the state of California to stop a new law that changes the way the state designates workers as employees or independent contractors. It could classify many drivers for companies like Uber and Postmates as employees instead of contractors, meaning they'd be entitled to benefits like employer-provided health insurance and paid time off. The companies say that could hurt their businesses financially and that the law is unconstitutional.
■Class discussion: Drivers for companies like Uber, Postmates and Lyft also supply the vehicles and fuel used to carry passengers and goods. What do the drivers get in return? Is the deal good for the companies, the drivers or both? Why? Do most companies use “independent contractors” to pay workers as little as possible? Would you be willing to pay more for goods and services so everyone could get health insurance, paid time off and retirement benefits?