New California law banning toxic chemicals in cosmetics will transform the industry

A toxic-chemical ban signed into law in California will change the composition of cosmetics, shampoos, hair straighteners and other personal-care products used by consumers across the country, industry officials and activists say. The ban, signed by Gov. Gavin Newsom at the end of September, covers 24 chemicals, including mercury, formaldehyde and several types of per- and polyfluoroalkyl substances, known as...

Franchise Groups Plan to Sue Over California Gig Worker Law

California’s rigid worker classification standard threatens relationships between franchise owners and their brands, business groups said in announcing the latest legal challenge to the state’s controversial Assembly Bill 5. The International Franchise Association, along with several other groups and companies such as the Asian American Hotel Owners Association, Dunkin’ Donuts, and Supercuts, said they will file a lawsuit in the U.S....

Uber bought itself a law. Here’s why that’s dangerous for struggling drivers

The company, along with Lyft and DoorDash, spent more than $200m to deny drivers the wages and benefits they’re entitled to. Last week, Uber bought itself a law. Along with Lyft, Instacart, DoorDash and Postmates, app companies spent more than $200m – the most spent on any ballot campaign in US history – to bankroll Proposition 22 in California. With its passage, the...

Prop 22 passes in California, exempting Uber and Lyft from classifying drivers as employees

Backed by more than $200 million from Uber, Lyft, DoorDash, Instacart and Uber-owned Postmates, Proposition 22, or Prop 22, is the costliest ballot measure in California’s history, according to Ballotpedia, underscoring how important its passage was to the future of their businesses. Uber (UBER) and Lyft (LYFT) stocks are both up over 11% percent on the news. Prop 22, or the App-Based Drivers as Contractors and Labor Policies...

Inside Uber and DoorDash’s Push to Win the Most Expensive Ballot Race in California History

California voters are set to decide Nov. 2 whether drivers of Uber and other app-based ride-hailing firms should be independent contractors or employees. One lawyer who has sued Uber over worker classification called Proposition 22 the “equivalent to a $1.5 billion presidential campaign for a single issue.” Uber Technologies Inc., Lyft Inc. and DoorDash Inc. are spending tens of hundreds of thousands of {dollars}...

New California Law Expands Successor Liability for Labor Code Judgments

On September 30, 2020, California Governor Gavin Newsom signed Assembly Bill (AB) 3075, which amends the California Labor Code to allow employees to collect wage and hour judgments not only from their employers, but also from certain successor businesses that take over operations when the employers have failed to pay the judgment debts. Specifically, AB 3075 adds Section 200.3 to the...

ISS proposes voting policy changes for 2021

Last week, ISS released for public comment a number of proposed voting policy changes to be applied for shareholder meetings taking place on or after February 1, 2021.  The proposed changes for U.S. companies relate to board racial/ethnic diversity, director accountability for governance failures related to environmental or social issues and shareholder litigation rights, i.e., exclusive forum provisions. Comments may be submitted on the...

New report looks at board gender diversity in California

With the passage of SB 826 in 2018, California became the first state to mandate board gender diversity. The California Partners Project, which was founded by California’s current First Lady, has just released a new progress report on women’s representation on boards of California public companies, tracking the changes in gender diversity on California boards since enactment of the law.  According to...

Crest v. Padilla redux—conservative activist group challenges AB 979, California’s board diversity law for “underrepresented communities”

It didn’t take long.  From the folks that brought you Crest v. Padilla (see this PubCo post), we now have the sequel, Crest v. Padilla II.  You might recall that, shortly after SB 826, California’s board gender diversity bill, was signed into law, a conservative activist group challenged the new law, filing Crest v. Alex Padilla I in California state court on behalf of three California taxpayers...

California Higher Education Bill AB70 Signed into Law by Governor Newsom (and Why it Matters)

Governor Newsom has signed AB70 into law. This bill impacts how nonprofit and public institutions will be recognized under the California Private Postsecondary Education Act of 2009 (the Act) as enforced by the Bureau for Private Postsecondary Education (BPPE), and, now, the California Attorney General (AG). As a refresher, this bill amends the Act by limiting, in certain circumstances, the authority of...