Start News Dispute over Self-Employed Act: Uber sues California

Dispute over Self-Employed Act: Uber sues California

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The US travel agent Uber is suing the state of California in the dispute over a law on freelancers. Before the law came into force today, Uber went to court with the courier company Postmate. California law in some cases classifies self-employed workers as employees, which guarantees them a minimum wage and health care benefits.

This is in contrast to the “Gig Economy” business model, in which companies like Uber place short-term contracts with independent freelancers. The agent would have to pay higher social security contributions because of the law. He describes the text as unconstitutional: companies and freelancers have the right to work within the framework of this business model.

„Independence and flexibility“

In their lawsuit, Uber and Postmate argue that the gig economy allows drivers to „make money whenever and wherever they want, with unprecedented independence and flexibility.“ They also criticize the exceptions provided for in the law for certain professional groups such as commercial travelers, drivers of construction site trucks and professional fishermen.

Uber and its US competitor Lyft each spent $ 30 million to organize a referendum, if necessary, to replace the law with a proposed compromise on social rights. Such referenda are possible under California law.