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Uber and Lyft Drivers Offered Incentives to Fight Bill That Targets Gig-Economy

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  • On July 9 hundreds of Uber and Lyft drivers gathered outside the California State Capitol for a rally about Assembly Bill 5, which would impact how the state determines if a worker is an employee or an independent contractor. 
  • On Monday, the Los Angeles Times reported that the I’m Independent Coalition, a group who works closely with Uber and Lyft, offered to pay drivers to attend the rally against Assembly Bill 5. 
  • Drivers say they also received emails and in-app offers from Uber and Lyft if they attended the rally against the bill.  

The Rally

Drivers for Uber and Lyft say the ride-share companies offered incentives to workers that lobbied against a proposed bill that would allow drivers to be employees instead of independent contractors.

On Monday, the Los Angeles Times reported that drivers for Uber and Lyft who attended the July 9 rally outside California’s State Capitol were compensated for their “travel, parking and time.” 

According to the report, an email from the I’m Independent Coalition was sent to drivers, offering them anywhere from $25 to $100 if they rallied on the group’s behalf. I’m Independent is a coalition that is funded by the California Chamber of Commerce and works to change the proposed legislation. According to their website, both Uber and Lyft are supporters of I’m Independent.

Following the rally, the LA Times says that another email was sent out, reassuring workers that their compensation would be sent over soon. 

“We want to thank you again for taking time to attend the State Capitol Rally on July 9,” the email states. “Your voice had an impact and the Legislature heard loud and clear that you want to keep your flexibility and control over your work! Please expect a driver credit in the next five business days for your travel, parking, and time.”

I’m Independent later confirmed to the paper that the drivers who attended the rally had been paid.

However, the report says the coalition was not the only group offering vouchers and compensation for attending the rally. A Lyft spokesperson confirmed that the company had offered drivers $25 to help cover parking, while Uber sent a $15 lunch voucher through their app and told drivers it was for them, their families, “and anyone you know who also has a stake in maintaining driver flexibility.”

The Bill

The rally outside of the state capitol was held ahead of a Senate labor hearing for Assembly Bill 5, a bill that states it “would provide that the factors of the “ABC” test be applied in order to determine the status of a worker as an employee or independent contractor.” 

The “ABC” test comes from an April 2018 California Supreme Court case, Dynamex Operations West, Inc. v. Superior Court. During that case, the Court ruled that in order to determine if a worker was an independent contractor, three qualifications must be met. According to court documents, those requirements are: 

“(A) that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact.”

(B) that the worker performs work that is outside the usual course of the hiring entity’s business,” and “(C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.” 

Under AB5, drivers for both Uber and Lyft would no longer be classified as independent contractors but instead employees. The main difference between an independent contractor and an employee is the regulations and requirements their employer must follow. If a worker is determined to be an employee, they receive things like sick pay, a required minimum wage, and a limit on the hours they can work. 

However, Assembly Bill 5 states that certain occupations are exempted from the “ABC” test, such as health care professionals like doctors and dentists, among others.  

In May, the bill passed in the state assembly in a 59 to 15 vote. Earlier this month the State Senate Committee on Labor, Public Employment, and Retirement voted the bill through. 

Uber and Lyft on AB5 

Uber has previously said the company will not take a side when it comes to the bill, but they do believe there are better solutions than Assembly Bill 5. 

However, at the beginning of June, Uber sent an email to their drivers saying the bill could “threaten your access to flexible work with Uber.” 

Lyft has taken a similar approach and also sent an email to its drivers, telling the workers that the ride-share company is trying to “protect” their jobs. 

“Legislators are considering changes that could cause Lyft to limit your hours and flexibility, resulting in scheduled shifts,” the email, which was later shared by Lyft, states. “We’re advocating to protect your flexibility with Lyft, in addition to establishing an earning minimum, offering protections and benefits and giving drivers representation so that you have a voice in the company.”

Previous Responses to AB5

In May, Uber and Lyft drivers around the world went on strike asking for similar requirements employees receive, such as a minimum hourly wage. The strikes took place just three weeks before the state assembly voted and passed Assembly Bill 5 and advocated for similar requirements for drivers. 

Previous responses from Uber and Lyft drivers

Even though the strikes did not create any massive change to the companies, according to a June 2019 Ipsos study, the majority of drivers from both Uber and Lyft still want “the same workers’ rights as those in more traditional employment positions.”

Assembly Bill 5 advanced to the appropriations committee earlier this month but the committees are currently in summer recess.

See what others are saying: (Los Angeles Times) (International Business Times) (SF Gate)

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Supply Chain Issues Trigger Price Hikes, School Lunch Shortages, and More

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Many news outlets have cited experts warning of supply chain issues affecting holiday spending, but the consequences of ongoing bottlenecks are already being felt across the country.


Schools Struggle for Food 

A host of supply chain bottlenecks are affecting products and businesses throughout the U.S., forcing prices of goods and services to rise. 

In Colorado, the ​​Denver Public Schools system said it’s struggling to make sure it has enough milk for students on a daily basis, Insider reported Sunday. In fact, the schools are so short on milk cartons they’ve now resorted to asking students to bring refillable water bottles instead.

“When the milk is available, we are prioritizing serving milk at breakfast at all schools and at our elementary schools for lunch,” Theresa Hafner, DPS executive director of Food Services, told Insider in an email.

Meanwhile, other schools are struggling to find additional lunch-related supplies including meats, orange juice, meal trays, and plastic cutlery.

According to NBC News, Shonia Hall, director of school nutrition services for Oklahoma City Public Schools, even found herself needing to make a run to a local Sam’s Club to purchase 60,000 spoons and forks each just “to get us through for a few days in hopes the truck would show up.”

“It’s an additional cost to your budget, to your program,” she added.

Zillow Pauses House Buying

The issues also extend to the housing market, as both labor and supply shortages have led to operational backlogs for renovations and closings.

Zillow cited those issues Sunday when announcing that it would stop buying homes at least through December. Instead, the company said it plans to first prioritize the selling of its current catalog of homes. 

“We’re operating within a labor- and supply-constrained economy inside a competitive real estate market, especially in the construction, renovation and closing spaces,” Jeremy Wacksman, Zillow’s chief operating officer, said in a statement cited by Yahoo! Finance.

Zillow’s share price fell as much as 11% from around $94 to around $84 early Monday as investors pulled out of the company.  

What’s Causing the Issues?

U.S. companies are having a hard time stocking their shelves with certain products and keeping prices from rising largely because of factors induced by the pandemic.

The first and most basic issue is that last year, most consumer spending halted amid COVID-19 lockdowns in March. Around that same time, many companies were forced to scale back production and lay off workers.

However, more people are now returning to the outside world, and with that comes a boost in shopping. Still, several businesses have found themselves unable to ramp up production to meet the increased and arguably unprecedented demand.

In addition to production issues, there are numerous transportation challenges. For example, a large wave of businesses have struggled for months to fill open positions. One such industry where that’s being acutely felt is trucking.

In fact, the country is so stressed for drivers to haul freight that at least one high school in California has now launched a program to train seniors to drive big rigs

Meanwhile, Walmart, UPS, and FedEx all made 24/7 transportation commitments last week. 

The supply chains problems don’t stop with ground transportation. One of the most pressing situations seen so far involves the problems at the Ports of Los Angeles and Long Beach in California, where container ships are backed up. 

Pre-pandemic, it was fairly unusual for any cargo ship to be seen waiting off the coast to get into one of the two ports, which process 40% of all shipping containers entering the U.S. Now, dozens of ships have been waiting weeks to get in. 

Even once they unload, there’s another major backlog involving shipping containers at the ports. Because of those combined issues, Long Beach extended its operational hours in September.

President Joe Biden later announced on Oct. 13 that L.A.’s port will “operat[e] around the clock 24/7” as part of a “90-day sprint” to clear a path for cargo.

Supply chain issues are expected to impact holiday shoppers, but many analysts expect the problems to extend well into 2022. Transportation Secretary Pete Buttigieg echoed that prediction on Sunday during an appearance on CNN. 

See what others are saying: (NBC News) (Insider) (Wall Street Journal)

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Facebook Is Reviewing More Than 2,200 Hours of Footage for Next-Gen AI 

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The project, which could prove to be revolutionary, is already raising some big privacy concerns. 


Facebook’s Next-Gen AI

Facebook announced Thursday that it has captured more than 2,200 hours of first-person video that it will use to train next-gen AI models.

The company said it aims to make the AI, called Ego4D, capable of understanding and identifying both real and virtual objects through a first-person perspective using smart glasses or VR headsets. In effect, that could potentially help users do everything from remembering where they placed forgotten items to recording others in secret. 

Facebook listed five key scenarios the project aims to tackle and gave real-world examples of how each may look for people who will eventually use the AI.

  • “What happened when?” With that scenario, Facebook gave the example, “Where did I leave my keys?”
  • “What am I likely to do next?” There, Facebook gave the example, “Wait, you’ve already added salt to this recipe.”
  • “What am I doing?” For example, “What was the main topic during class?”
  • “Who said what when?” For example, “What was the main topic during class?”
  • “Who is interacting with whom?” For example, “Help me better hear the person talking to me at this noisy restaurant.”

Facebook said the amount of footage it has collected is 20 times greater than any other data set used by the company.

Privacy Concerns

In the wake of recent controversy surrounding Facebook, it’s important to note that the footage wasn’t reaped from users. Instead, the company said it, and 13 university partners, compiled the footage from more than 700 participants around the world.

Still, that hasn’t alleviated all privacy concerns. 

In an article titled, “Facebook is researching AI systems that see, hear, and remember everything you do,” The Verge writer James Vincent said that although the project’s guidelines seem practical, “the company’s interest in this area will worry many.”

In addition to the recent testimony and data leaks from whistleblower Frances Haugen, Facebook has also faced other privacy issues, as well as billions in fines

Vincent pointe out that the AI announcement doesn’t mention anything in the way of privacy or removing data for people who may not want to be recorded.

A Facebook spokesperson later assured Vincent that privacy safeguards will be introduced to the public in the future.

“For example, before AR glasses can enhance someone’s voice, there could be a protocol in place that they follow to ask someone else’s glasses for permission, or they could limit the range of the device so it can only pick up sounds from the people with whom I am already having a conversation or who are in my immediate vicinity,” the spokesperson said.

Among positive reception, some believe the tech could be revolutionary for helping people around the house, as well as for teaching robots to more rapidly learn about their surroundings.

See what others are saying: (The Verge) (CNBC) (Axios)

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FDA Issues Its First E-Cigarette Authorization Ever

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The authorization only applies to tobacco-flavored products, as the FDA simultaneously rejected several sweet and fruit-flavored e-cigarette cartridges. 


FDA Approves E-Cigarette

The U.S. Food and Drug Administration approved an e-cigarette pen sold under the brand name Vuse on Tuesday, as well as two tobacco-flavored cartridges that can be used with the pen.

This marks the first time the FDA has ever authorized the use of vaping products. In a news release, the agency said it made the decision because “the authorized products’ aerosols are significantly less toxic than combusted cigarettes based on available data.”

“The manufacturer’s data demonstrates its tobacco-flavored products could benefit addicted adult smokers who switch to these products — either completely or with a significant reduction in cigarette consumption — by reducing their exposure to harmful chemicals,” the agency added. 

The company that owns Vuse, R.J. Reynolds Vapor Company, also submitted several sweet and fruit-flavored pods for review; however, those were all rejected. While the FDA did not specify which flavors it rejected, it did note that it has yet to make a decision on whether to allow menthol-flavored e-cigarettes, including ones sold under Vuse.

FDA Is Reviewing All Vape Products Still on the Market

In January 2020, the FDA banned pre-filled pods with sweet and fruity flavors from being sold. While other e-cigarette related products, including some forms of flavored vapes, were allowed to stay on the market for the time being, they were only able to do so if they were submitted for FDA review.

The FDA’s primary issue with fruity cartridges stems from statistics showing that those pods more easily hook new smokers, particularly underage smokers.

In fact, in its approval of the Vuse products, the FDA said it only authorized them because it “determined that the potential benefit to smokers who switch completely or significantly reduce their cigarette use, would outweigh the risk to youth, provided the applicant follows post-marketing requirements aimed at reducing youth exposure and access to the products.”

While some have cheered the FDA’s decision, not everyone was enthusiastic. Many critics cited a joint FDA-CDC study in which nearly 11% of teens who said they vape also indicated regularly using Vuse products. 

See what others are saying: (Business Insider) (Wall Street Journal) (The Washington Post)

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