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Article

20 Jan 2020

Author:
Alison Griswold, Quartz

USA: Uber implements new rules to counteract California law which has strict standards for classifying employees as independent contractors

"Uber is going back in time to prove its drivers aren’t employees," 14 Jan. 2020

Uber made some major changes in California last week.

The changes, Uber wrote in an announcement to drivers, are “to further clarify the relationship between you and your riders, and Uber’s role as a technology platform.” They came a week after a new California law, known as AB5, took effect that makes it harder to classify workers as independent contractors rather than employees.

The two biggest changes Uber is making to its business in California are:

1. No more upfront pricing. Passengers will see an estimated price range rather than a set dollar figure before requesting any non-Pool ride...

2. The return of surge multipliers for drivers. Uber at some point replaced the multipliers drivers could earn on fares during busy (“surge”) periods with a “flat surge” system that added a fixed amount to the driver’s earnings price...

Uber told California riders in an email. “Our goal is to keep Uber available to as many qualified drivers as possible, without restricting the number of drivers who can work at a given time.”