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...
Legal advice is often unaffordable. Here’s how more people can get help: Kourlis and Gorsuch
Arizona and Utah are pioneering ways to expand access to legal services, and we hope other states follow. You shouldn’t have to go it alone in court. Sooner or later, almost all of us face a need for legal advice. Maybe we want a will drafted, find ourselves in a divorce, or disagree with our landlord about a lease. Property disputes,...
ABA Committees Urge States to Reexamine Law Firm Ownership Rules
Reformers within the American Bar Association want more state-led experiments to open up rules on who can own law firms and provide legal services. The ABA’s Center for Innovation and four standing committees, including one that studies ethics and professional responsibility, have put forth a report and a resolution to the ABA House of Delegates, and are seeking a vote...