Daily Business Report-May 13, 2019
An Uber drives gives a passenger a ride. (Photo by Alexander Torrenegra via Wikimedia Commons)
Commentary
Gig economy workers deserve basic
protections that come with employee status
By Art Pulaski | Special to CALmatters
Like so many California families, Karim Bayumi of Anaheim, his wife and two young children are doing everything they can to scrape by.
Bayumi drives for a large rideshare company as his primary source of income. On March 11, Bayumi’s rate was cut from 80 cents a mile to 60 cents a mile, just barely above the government mileage reimbursement rate. No warning. No explanation. In an instant, a chunk of his income just disappeared.
Uber, Lyft and other app-based employers call drivers like Bayumi “independent contractors,” meaning, in theory, Bayumi is his own boss. But he has no ability to set his own rates, and the companies have the power to deactivate him at any time through no fault of his own.
The companies even mandate drivers take a certain number of rides per week if they want to earn the best possible rate, meaning his flexibility to work when he wants is extremely limited.
Bayumi works in what’s been called the gig economy. But like so many others, for him, this isn’t a gig. It’s his job. And he’s not even making minimum wage. He doesn’t have unemployment insurance. There’s no workers’ compensation if he’s injured. No overtime if he puts in extra-long days.
“We’re labeled independent contractors but they don’t treat us as independent,” Bayumi says.
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A gig economy is a free market system in which temporary positions are common and organizations contract with independent workers for short-term engagements. The term “gig” is a slang word meaning “a job for a specified period of time.”
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The proliferation of corporations arbitrarily classifying workers as contractors to cut costs is part of a larger fissuring of the workplace that makes full-time stable employment increasingly hard to find.
Recognizing the disastrous nature of this trend to California workers and our economy, the California Supreme Court issued a landmark decision in the Dynamex Operations West case last year that set up a simple A-B-C test employers must use to determine if a worker is an employee or an independent contractor.
This isn’t a new idea. A similar test is used in several other states. The ruling simply states that to be called independent, a worker must be free from employer control, doing work outside the regular scope of the business, and independently established in that trade.
For example, if a graphic designer offers her services to a restaurant to design a menu, she meets the definition of independent. And there will always be a place in the economy for true independent contractors.
Unfortunately, workers in many fields, including construction, truck driving, health care and in the on-demand economy have been misclassified as contractors just so the companies employing them can shave costs by nixing basic worker protections.
These companies are also cheating California out of tax revenue to the tune of $7 billion a year, meaning that they aren’t paying their fair share for our schools, public safety, roads and bridges.
Despite the ruling, mega-corporations in the gig economy continue to flout the law. These companies have settled lawsuits and are being challenged in arbitration by drivers who have been misclassified. And while IPOs are bringing rideshare companies tens of billions of dollars in investment, the companies continue to mistreat drivers who are the backbone of their businesses.
In response to this growing problem, the California Labor Federation strongly supports Assembly Bill 5 by Democratic Assemblywoman Lorena Gonzalez of San Diego.
AB 5 would codify the Dynamex case into California law, and clarify to whom the law applies. This bill provides certainty to California businesses and workers. The measure has the potential to bring hundreds of thousands of workers currently cheated out of wages and basic protections into employee status.
The bill would also level the playing field for business owners who follow the law, eliminating the competitive disadvantage they currently face against employers who cheat.
AB 5 has broad support of worker advocates, community groups and responsible businesses. And for workers like Bayumi, its passage would be life-changing.
On May 8, Bayumi and thousands of other Uber and Lyft drivers are going on strike across the state to call for basic rights and protections like those afforded through AB 5.
“We’re going on strike because we’re angry and frustrated,” Bayumi said. “There have to be some standards in the rideshare industry. These companies do whatever they want. They don’t answer to anyone. We’re just trying to make a living.”
Art Pulaski is chief 0fficer of the California Labor Federation, apulaski@calaborfed.org. He wrote this commentary for CALmatters.
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West Health’s Shelley Lyford appointed
to California Commission on Aging
Shelley Lyford, the president and CEO of nonprofit, nonpartisan West Health, has been appointed to the California Commission on Agin by the Senate Rules Committee, with Senate President pro Tempore Toni Atkins leading the appointment as chair of the committee.
Lyford has been the chief executive at West Health for four years and has led Gary and Mary West’s philanthropic endeavors to lower health care costs and improve care for seniors since its inception in 2006. She has worked to advance the organization’s mission through a combination of applied medical research, policy, advocacy, and outcomes-based philanthropy.
Lyford led West Health’s development of several innovative models for senior health care, including launching the Gary and Mary West Senior Dental Center for low-income seniors in 2016 and opening the Gary and Mary West Senior Emergency Department at UC San Diego Health in 2019. Under her guidance, the Gary and Mary West Foundation awarded 518 grants totaling more than $211 million for health care research and social services for seniors and their caregivers. Lyford also serves as vice chair of the board of directors for Civica Rx, a not-for-profit generic pharmaceutical company that will help address drug shortages and lower the high prices of lifesaving medications.
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San Diego Green Building Council
calls for projects for 2019 Green Homes Tour
The San Diego Green Building Council is now accepting project submissions for its 10th annual Green Homes Tour, which will be held on Saturday, Oct. 19 and Sunday, Oct. 20.
Each year, the event brings together hundreds of members of the local community to celebrate best practices in green building and design while showcasing the innovative work of some of the industry’s top professionals. Due to its increasing popularity, the event is expanding to two days this year, allowing guests to visit more homesites throughout the county.
For this year’s Green Homes Tour, the committee will consider a variety of residential project types including:
- Single- and multi-family homes, new construction, renovations or additions
- Custom, spec and production-built homes
- Third-party green certifications (LEED, GreenPoint Rated, Living Building Challenge, etc.)
- Unique home types: converted shipping containers, tiny homes, etc.
- Permaculture/water-wise gardens and exterior spaces
- Communal living and other creative project types that promote a more sustainable lifestyle
- Sustainable design features (building sites, materials, water/energy conservation, indoor air quality, landscaping, etc.)
To submit a project for the Tour, complete a brief application form at at http://tinyurl.com/ght2019.
The application deadline is May 31 for priority consideration. Applicants are encouraged to submit their projects early as the number of available tour spots is limited. Additional project submissions will be accepted through June 30, space permitting.
To learn more about the Green Homes Tour, visit the event website at www.sdgreenhomestour.org or contact Adam Pascu at adam@73degrees.com or (858) 761-1707 with any questions.
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Dinsmore & Shohl associate Elvira Cortez
is new president of Lawyers Club of San Diego
Dinsmore & Shohl litigation associate Elvira Cortez is the new president of Lawyers Club of San Diego. Cortez began her presidency at the club’s annual dinner, where she addressed more than 750 attendees.
Cortez first joined the club in 2011 and has since served as the co-chair of the Diverse Women’s Committee, a member of the board, co-chair of the annual dinner and vice president of finance and fundraising.
Cortez’s passion and drive for equality fits with the mission of the club and the responsibilities of the presidency. “Women continue to be underrepresented in the legal profession,” she said. “This year marks the 150th anniversary of when the first woman passed the bar in the United States. But despite that, we’ve only had four Supreme Court justices who are women, two who have been attorney general, and it wasn’t until 1962 that the first Latina attorney was able to practice in California. When I look at those numbers and compare them to the fact that women are graduating at higher levels than men from law school, and yet we continue to be underrepresented at many firms and in leadership positions, it’s concerning.”
Cortez, a 2009 graduate from the American University Washington College of Law, joined Dinsmore in 2017. Her presidency with Lawyers Club of San Diego will run through 2020.
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AIAA honors outstanding
General Atomics employees
Chris Dusseault, Claudia Mowery and Brandon Suarez of General Atomics Aeronautical Systems, Inc. (GA‑ASI) were honored by the American Institute of Aeronautics and Astronautics (AIAA) with awards for outstanding contributions to aerospace at an event on May 9. GA-ASI is a leading employer in the San Diego area and manufacturer of Remotely Piloted Aircraft (RPA) systems, radars, and electro-optic and related mission systems solutions.
In the category of Outstanding Contribution to Aerospace Management, Chris Dusseault, senior director of international programs, was recognized for his leadership in the development of the company’s MQ-9B SkyGuardian RPA. SkyGuardian has been selected by the United Kingdom’s Royal Air Force for its Protector RG Mk1 Program. GA-ASI and the Royal Air Force will make aviation history when they field the first RPA certified to operate in civilian airspace, expected in the early 2020s.
Claudia Mowery, technical director and chief engineer of GA-ASI’s Block 50 Ground Control Station (GCS), was honored for Outstanding Contribution to Aerospace Engineering. Mowery and her team of more than 100 engineers successfully navigated a formal Preliminary Design Review and Critical Design Review with the U.S. Air Force, enabling the new GCS to field advanced capabilities that will enhance combat effectiveness. Ms. Mowery and her team were then responsible for the first flight of an MQ-9 Reaper controlled by the new USAF Block 50 GCS this past January.
A second award for Outstanding Contribution to Aerospace Engineering was presented to Brandon Suarez, technical director of UAV Civil Airspace Integration for GA-ASI. Suarez helped GA-ASI and its partners perform the first-ever flight of a large RPA without a chase plane in non-segregated airspace featuring an airborne Detect and Avoid (DAA) system.
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Interactive Day 2019 to Draw Digital Leaders
The 15th annual Interactive Day San Diego (IDSD) will be held from 9 a.m. to 5:30 p.m. Friday, May 17, at the Hilton San Diego Bayfront Hotel, 1 Park Blvd., Downtown San Diego. This year’s theme is “Collide with Tomorrow.”
Presented by SDX, formerly the San Diego Advertising Club, IDSD will feature presentations on the newest industry trends and best techniques from the top marketing and tech leaders in the field, as well as opportunities to mingle with many of the region’s smartest and innovative strategists, story-tellers and social media mavens. Four tracks will be offered, titled “Humanity,” “Machine,” “Mastery” and “Story.” Cost to attend is $349 for members of SDX and the American Advertising Federation, $499 for nonmembers and $149 for students.
Speakers will include: Michelle Poler, consultant, branding strategist; Afdhel Aziz, Conspiracy of Love; John Goodwin, Patagonia; Jen Tank, Brandless; James Cheung, Verizon; Adam Morgan, Adobe; Jason Harris, Mekanism; Kaylee Pohlmeyer, General Mills; Missi Pyle, The Motherload; Matt Faulk, Basic; Constance Zimmer, The Motherload; Steve Babcock, Vayner Media; Jennifer White, Perfect Bar; Miguel Sanchez, Mass Ideation. For more details, visit www.interactiveday.com or call SDX at (619) 255-2281.
