California is at it again. The worst state in the union is now threatening UBER with a bill that would require the company to provide benefits to its contractors, which effectively makes them official employees.
Ah, another fine and fruitless effort by the government brain trust of California to destroy a convenient means of earning supplemental income.
Here are the benefits of working as a contract employee for Uber or Lyft:
- Set your own hours and work when you want.
- Supplement income from your full-time gig as needed.
- Occasionally witness the miracle of life!
Okay, that last one is more of a hazard than a benefit. The parents wouldn’t even pony up a few extra bucks for a carwash after smearing birthing batter all over the backseat. You can’t just hit that mess with Fabreeze; you have to go full industrial-strength cleaner (unless you opted for the economy vinyl package, you cheap bastard).
Anyway, the whole point of Uber and Lyft is that you’re not a full-time employee. The problem, however, is that there are Uber and Lyft drivers who think they should be treated as full-time employees with benefits, vacation time, higher pay, and all the other goodies that come with a traditional job. Thus, they’re screwing it up for the rest of us and receiving a healthy dose of bureaucratic help from their pals in Sacramento, CA.
How the fine political pinheads of California are screwing up Uber and Lyft, according to the good people of CNBC:
- California lawmakers passed a landmark bill on Wednesday that threatens to reshape how companies like Uber and Lyft do business.
- The legislation, known as Assembly Bill 5, would require gig economy workers to be reclassified as employees instead of contractors.
- The bill has received support from California Gov. Gavin Newsom (the guy who screwed up San Francisco) and would go into effect Jan. 1, 2020.
Here’s how much more Uber and Lyft rides will cost in California if AB5 goes into law, according to Marketwatch:
Passengers in the Golden State will pay an additional 70 cents to $1.80 per ride if Uber and Lyft have to reclassify their drivers from cheaper-to-pay “independent contractors” to employees with full benefits, according to a Wednesday note from the investment bank Evercore ISI.
For context, Uber estimates riders would pay at least $7.65 for a 13-mile Uber pool ride from San Francisco’s Union Square to the airport 20 minutes away without traffic.
$0.70? Big whoop, right? Wrong!
You see, the problem isn’t necessarily one of pricing; it’s a problem of government intrusion, which will ultimately lead to the elimination of job opportunities with ride-sharing services like Uber and Lyft. Unlike public transit and cab drivers, who are “protected” by unions that collude with the government, Uber and Lyft have fully-independent enterprises that are focused on increasing profit through greater efficiency.
Simply put: there’s a reason that factory workers have been replaced by automation. Does anyone want to venture a guess on where the next fleet of self-driving cars will be rolled out?
WIBC host Tony Katz discussed California’s Uber and Lyft debacle on his radio show Thursday. Click below to hear what he had to say!
