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McClatchy Washington Bureau
McClatchy Washington Bureau
Business
David Lightman and Hannah Wiley

Joe Biden backs new California labor law as Uber, Lyft and DoorDash try to undo it

Joe Biden has declared himself firmly against the California initiative to overturn the new state law requiring companies to provide more benefits to app-based workers for Uber, Lyft, DoorDash and others.

The presumptive Democratic presidential nominee made his view clear in a tweet posted on the same day he got the enthusiastic endorsement of the AFL-CIO.

Biden tweeted that "Last year California passed #AB5, affording gig workers protections and benefits like a minimum wage and overtime pay.

"Now, gig economy giants are trying to gut the law and exempt their workers. It's unacceptable. I urge Californians to vote no on the initiative this November."

The former vice president has consistently supported the effort to get benefits for gig workers.

"All workers deserve the right to bargain for good wages, benefits and working conditions _ including gig workers. That is why I'm pleased the CA Legislature passed AB5. As president, I will enact a federal law to ensure gig workers get the full protections they deserve," he tweeted in September. In March, he reinforced his support in another tweet.

The AFL-CIO endorsement was no surprise. During his 36-year Senate career, Biden was known as a strong labor advocate.

"He's been to our union halls. He's marched on our picket lines. He is a champion in every sense of the word," AFL-CIO President Richard Trumka said in a video message Tuesday.

The timing of the tweet was "coincidental, as far as I know," said Steve Smith, the California Labor Federation communications director.

Just how much a candidate's ties to the unions help has been a matter of dispute for decades. The AFL-CIO endorsed Democratic presidential nominee Hillary Clinton in June 2016. Exit polls show she got 51% of the vote in union households.

While Biden is expected to win California's 55 electoral votes easily, his full-throated support for the state initiative could send a message to union interests all over the country.

"Vice President Biden sent a clear message that no corporation is above the law _ not even Uber, Lyft or DoorDash. Our campaign will slam the brakes on their $100 million attempt to keep denying their workers essential workplace protections, pay, and benefits," said Bob Schoonover, president of the Service Employees International Union in California.

Added the labor federation's Smith, "I do think this helps him generally as he makes a clear case to voters that he's legitimately concerned about the plight of workers and will stand up to efforts to further exploit them."

Gov. Gavin Newsom signed the landmark law in September, following a months-long, contentious battle between labor advocates and business groups.

The law was designed to limit in most cases an employers' ability to use independent contractors. Now, Assembly Bill 5 largely requires these workers to be treated as employees with benefits like minimum wage, workers' compensation and paid sick time.

Uber, Lyft and DoorDash within weeks of Newsom's signature had announced their plan to take the issue to the ballot. Since the fall, the companies have raised more than $100 million for the effort. The California Secretary of State's Office confirmed on Friday the campaign had collected the 623,212 signatures required to qualify the initiative.

The initiative would exempt the companies from the new law, but it promises to improve conditions for gig drivers by requiring companies to pay them compensation above minimum wage, plus 30 cents per mile, according to Protect App-Based Drivers & Services, the coalition behind the measure. The ballot initiative would also mandate health care coverage for drivers who work at least 15 hours per week, and the workers could qualify for certain insurance benefits.

Advocates have celebrated AB 5 as an overdue protection for low-income workers whose labor they say has been exploited by wealthy gig economy companies.

Opponents criticized AB 5 as a tight restriction against independent workers who prefer employment flexibility. Truckers and freelancers who claim the law has impaired their work have since filed lawsuits against California.

The opposition has done little to sway California's top officials. Newsom's budget proposal includes $21 million to enforce AB 5, and Attorney General Xavier Becerra has launched a lawsuit against Uber and Lyft in efforts to obtain millions in back wages.

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