California's state government signed into law a change in employment classification, which would force ride-hailing companies like Uber Technologies Inc UBER to no longer support "gig workers" on its platform.
Uber publicly stated it won't comply with any law change and feels confident it can win its case in a court decision, Uber investor and Tusk Ventures founder and CEO Bradley Tusk told CNBC Friday morning.
Why It's Important
On-demand and in-home beauty service companies like Glamsquad are exempt from California's law change, Tusk said. Glamsquad and other similar companies worked with California's legislators to identify and resolve any potential issues.
There is one main distinction that plays against Uber's case: Individuals on Glamsquad's platform typically work for a beauty salon and perform in-home and on-demand jobs on the side.
By contrast, there are some Uber drivers who drive 60 hours a week, which is the equivalent of a full-time work week.
What's Next
The courts may ultimately find that an Uber driver who drives 60 hours a week is "clearly an employee," but someone who cleans homes for 14 hours a week with Handy is "clearly" not.
"I think the problem right now is politics is politics so everything is happening based on a political momentum, norms and extremes," Tusk concluded.
Related Links:
Uber And Lyft Hold Their Breath In The Wake Of California Bill
Report: Uber, Lyft In Talks With California Governor On Gig Economy Workers
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