“The writing is on the wall, they need to comply with these laws.” CEO John H. Chuang
Uber and Lyft were ordered by San Francisco Superior Court to comply with California’s AB5 law and reclassify drivers from independent contractors to employees with benefits like overtime and healthcare. It’s a major loss for gig companies. Uber said it may have to shut down its ride-hailing app in the state. “Uber is just trying to protect their subsidy,” said Aquent CEO John Chuang. He said five million companies in America obey our laws, pay payroll taxes, and manage to provide value to customers too. “If they do have to shut down, maybe they should.”
Yahoo! also asked Chuang about Aquent’s new Robohead 10,000 index which measures marketing work activity as a precursor to measures like employment and GDP. Chuang predicts a slower than expected recovery from COVID19 shutdowns.
This story originally broadcast on Yahoo! Money.
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