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Democrats’ Failed AB 5 Continues to Hurt Californians

Aug 21, 2020
Press Release

 

Today, Congressman Kevin McCarthy released the following statement after a California appeals court called for an emergency stay after Uber and Lyft announced that they would be suspending their services in California. This comes after the state has refused to work with these companies in order to support drivers who prefer flexible income and riders who benefit from these ridesharing platforms.

McCarthy released the following statement: 

“AB 5 does not work, and it never has. Now, the two largest ridesharing companies in the United States, both of which were founded and are currently headquartered in California, are prepared to leave the state because Democrats refuse to fix their terrible error, even though it is crushing gig economy workers and the people who use these services. 

“For months, gig workers have vocally expressed their utter opposition for AB 5, but sadly, their cries of frustration have fallen on the deaf ears of Sacramento Democrats who have been unwilling to reverse course. AB 5 is not only hurting these drivers – nearly 90 percent of whom are expected to lose their jobs – but countless Californians with limited transportation options who rely on these services to manage traveling to work, school, and doctor’s appointments in the midst of a pandemic.

“California is known as the land of innovation, technology, and creativity – our movie industry is based here, as is Silicon Valley. Yet, day after day, companies are choosing to take their business elsewhere because Sacramento’s liberal  policies, like the failed high-speed rail; the inability to get residents the water they need and deserve; rolling blackouts or brownouts; the worst homelessness problem in the country; and now AB 5, have changed the very foundation that draws people to the Golden State. 

Yesterday’s actions should serve as a wakeup call to all Californians who benefit from these ridesharing services. The fact that California Democrats have allowed us to get to this point is lunacy - we need change.”

 

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Fast Facts about California's AB 5

 

  • A poll conducted by Global Strategy Group found that drivers have consistently said they want to remain independent contractors over becoming employees by a 4-to-1 margin.
  • The continuation of AB 5 would mean that nearly 90% of drivers would lose the ability to earn from their platforms entirely.
  • Decreased service, particularly in suburban and rural areas, is expected.
  • With 38% of California Lyft rides beginning or ending in low-income neighborhoods with limited transit options, lower-income riders would face more difficulty in finding affordable transportation options.