Uber braces for fight over big change to gig-economy work rules

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[SAN FRANCISCO] Uber Technologies Inc has generated billions of dollars from the labour of its drivers without the expense of treating them as employees. California is poised to disrupt that business model, and the ride-hailing behemoth is gearing up for a legal fight. Read more at The Business Times.

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Uber Technologies Inc has generated billions of dollars from the labour of its drivers without the expense of treating them as employees. California is poised to disrupt that business model, and the ride-hailing behemoth is gearing up for a legal fight.[SAN FRANCISCO] Uber Technologies Inc has generated billions of dollars from the labour of its drivers without the expense of treating them as employees.

"AB 5 doesn't all of a sudden - magic wand - change everybody's status to employee," said Tony West, Uber's general counsel. Instead, new criteria would be used to determine whether workers are employees or contractors, he said."Now, whether or not we win under that test in California remains to be seen," Mr West said.Skeptics say Uber may be too optimistic.

"That part of the story gets eroded somewhat if Uber is forced to increase prices in a material way." With the senate approval of the bill, it now goes back to the Assembly, which already passed an earlier version, before being sent to Newsom for his signature.

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