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California Professional Workers Act Exposition Number 22 was argued in the Court of Appeals

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For more than a year, California’s voter-approved gig economy law known as Proposition 22 has been hanging in the balance after… The judge is invalid The ballot initiative allows the transportation and delivery giants to classify their workers as independent contractors rather than employees.

A California appeals court on Tuesday heard oral arguments in San Francisco about whether it should uphold the lower court’s ruling that Proposition 22 was unconstitutional and unenforceable.

Members of the three-judge panel expressed skepticism about the legality of the 2020 ballot measure but also about the validity of the ruling, which experts called an abrupt dismissal of gig companies’ relentless efforts to rewrite business rules. California judges are often reluctant to overturn measures approved by voters.

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Industry proponents of this measure were previously Mocked lower court ruling on paid advertising as the fabrication of a “activist judge” who ignored the will of the electorate.

At stake is the business model of Uber, Lyft, DoorDash, Instacart and other app-based companies, which have spent more than $200 million pushing Proposition 22 as a way to protect people who choose to work as independent contractors. was the measure approved by nearly 60% of voters in November 2020.

For hundreds of thousands of drivers, Proposition 22 It maintained the flexible schedules associated with remaining an independent contractor but removed protections afforded by the 2019 law, AB 5, which required gig workers in many industries to be classified as employees with stronger benefits such as minimum wage, overtime and workers’ compensation in the event of injury.

the lower court ruling, Delivered by Alameda County Superior Court Judge Frank Roach in August 2021, it found that the law contravened the state constitution by restricting the legislature’s ability to regulate workers’ compensation rules. The ruling also argues that Proposition 22 violates a constitutional provision that requires initiatives to be limited to “a single topic.”

Roche writes that although the law purports to protect gig workers, it also “indirectly and indirectly” prevents them from collective bargaining, and thus “seems only to protect the economic interests of network companies in having a divided, non-union workforce.”

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asked Judge Tracy L. Brown during the hearing cited the provision in the law limiting legislative amendments to collective bargaining as outside the scope of Proposition 22’s stated purpose, and brought up the hypothetical idea of ​​repealing a single provision rather than the entire law.

California election law professors, in an amicus curiae memorandum filed before the appeals court’s first hearing, made a similar point, calling the ruling “unprecedented in the history of California initiatives,” and saying it was “harm action” and “allowing a bait-and-switch where voters pass Initiative on Subject A but the fine line would unconstitutionally prevent or limit the power of the legislature to legislate on Subject B.

Jeffrey L. Fisher, an attorney defending Proposition 22 on behalf of a coalition of gig companies, has argued that the law’s sole purpose is “very clear” and at its core defines “the relationship drivers have with the companies they work with”.

Described by Judge John B. Streeter proposition 22 as a threat to the legislature.

He said, “It appears to me that the removal of a large number of workers from the workers’ compensation system is not merely a change but an effective dismantling of a large part of the benefits which the Constitution mandates it to provide.”

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However, at times, Streeter also leaned towards respectability Voter Power He seemed skeptical of the idea that allowing voters to make changes to workers’ compensation violated the power of the state legislature. He also said that the one-subject rule is flawed because it is too subjective and subject to interpretation.

The gig coalition, Protect App-based Drivers & Services, in a video news conference Monday before the hearing, urged the appeals court to overturn the decision.

Kurt Onto, an attorney at Nielsen-Merxsammer, which represents the coalition, emphasized that California courts have repeatedly stressed the mandate to “jealously guard the initiative powers of voters and support their actions wherever possible.” In a video conference, Onto called the legal challenge to Proposition 22 “a broader attack on the powers of direct democracy to voters.”

My deputy. Gen. Jose Zeledon Zepeda, the state representative assigned to defend Proposition 22, emphasized this point in the hearing, describing the “liberal standard” that California courts have adopted regarding the power of voters.

In closing the oral arguments, Judge Stuart R. Pollack pointed out the sweeping implications of Proposition 22, stating that “the Court certainly recognizes the importance of this case.”

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The case is expected to eventually make its way to the California Supreme Court.

The kind of technical and process-oriented argument that historically supports this case has often not worked well in California to persuade courts to invalid voter-approved ballot initiatives, said Kenneth B. Miller, a professor of state and local government at Claremont McKenna College.

However, the make-up of the California Supreme Court has changed in recent years. Of the seven judges, only one was nominated—Carol A. Corrigan – by a Republican governor. He said Proposition 22 could be the first hotly contested ballot initiative to test the court.

said Stacey Leighton, an attorney at Altchuler Bearson Inc. representing plaintiffs serving FIA employees and the many drivers who Submit the original complaint against the proposal.

“We hope that, by dropping Proposition 22, the companies will not try to implement another initiative,” Lytton said. “People are becoming more aware of how workers are being misclassified.”

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Gig workers gathered with the group Rideshare Drivers United outside the Earl Warren Building in San Francisco Tuesday morning during the hearing. The rally was planned at one time outside the state appeals courthouse in Los Angeles.

Siola Luna, 43, a driver who attended the Los Angeles rally, said she didn’t understand the wording of Proposition 22 when it was on the ballot but “saw the reality of it” reflected in the lower earnings after it passed.

“I feel like if we don’t do something as drivers to speak out against the salary we receive, it will continue to go down,” she said.

Discussion of Proposition 22 comes amid a push by the Biden administration at the federal Labor Department to tighten rules on worker classification that, if adopted, would overturn a Trump-era rule that made it easier for companies to classify their workers as independent contractors rather than employees. . However, the proposed rule applies primarily to the federal Fair Labor Standards Act and would not substantially affect the treatment of workers in California or Proposition 22.

The appeals court is required to issue its decision within 90 days, though lawyers involved in the case have said they expect him to be released much sooner.

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Proposition 22 has remained in effect to date through the appeals process. Big gig companies — Uber and Lyft, among others — have repeatedly refused to comply with mandates to reclassify their workers as employees.



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@therapistzach deals with his bad TikTok username

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Laser, 30, is a licensed clinical social worker in Chicago who runs his own center Special training, created TikTok less than a month ago to post videos about the kinds of things he focuses on with his customers: self-esteem, body image, anxiety. Then, last week, he got a comment on one of his videos.

“At that moment, my blood was hot,” Laser told BuzzFeed News.

Laser, who now has nearly 31,000 followers on the app, said he never thought of a different reading of the words when he did the math, and in his job he sees the word “therapist” so often that he never thought of another interpretation.

Several commenters have pointed out that it looks like a joke in a Saturday Night Live Sitcom “Celebrity Jeopardy” featuring Darrell Hammond as Sean Connery:

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Gen Z adults pay rent with credit cards

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“I will never put rent on my credit card,” said M, a 26-year-old in Boston. She’s been trying to pay off the credit card debt she’s had for about a year She asked that her full name not be used. “I’m not sure I’d feel comfortable—or, to be honest, trust myself—to try this tactic.” She lives paycheck to paycheck and fears she will forget to pay her card for a month or fail to set aside that portion of her paycheck if her rent goes to a credit card. “It looks like a rabbit hole waiting for me to fall into,” M said.

“Credit card companies make money off people who don’t pay their bills on time,” said Lamarre. “Credit card people, like me and my friends, are at least getting rewards for using the cards responsibly. … It’s not something that I control, that people aren’t responsible for, but I try to tell people how to work within the system and not be a victim of it.” .

the Average credit card balance Among Gen Z consumers last year it was $2,854, according to Experian. LendingTree’s Channel predicts that Gen Z consumers’ credit card use will increase as they age, as did millennial consumers. Many of them are still not fully financially independent. When the pause on student loan payments is lifted, and more Gen Z adults are coming out restrictions Which makes it difficult for people under the age of 21 to get a credit card, their dependence on this type of debt is likely to rise.

As credit card companies develop new incentives, the channel has encouraged caution. “I certainly wouldn’t invite Gen Z, or anyone else, to come out and say, ‘Gee whiz, I have to start making my car payments with my credit card now, because I’m going to get more points,’” the channel said. For most people.” ●

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Why Los Angeles-based podcast company Maximum Fun is employee-owned

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Jesse Thorne has built a huge audience with his Maximum Fun podcast. His NPR interview show, “Bullseye With Jesse Thorn,” has had guests including Jonathan Majors, Tom Hanks, and Kareem Abdul-Jabbar.

But over the past few years, he said, running the business at MacArthur Park has driven him to the breaking point. The father of three struggled to balance his work life with his home life. He suffered from split migraines.

“You have to take a step back from this,” his wife, Teresa, told him at the dining room table in 2018. “I’m afraid you will die.”

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Then things got worse. Pandemic struck. The podcast industry has been consolidated by big tech companies like Amazon and Amazon.com Spotify Startups picked up In the field of audio and advertising technology.

Amidst personal and industrial turmoil, Thorne was faced with a choice: maintaining the status quo, which was unsustainable; Or sell a company that was not doing well.

“I’ve been trying to circle around how I can undo this stuff without selling out my fellow performers or friends,” said Thorne, 41.

Instead, he chose a third option: making the company an employee-owned operation.

On Monday, Thorne — who has co-owned Maximum Fun with his wife since founding it in 2011 — announced that his company would become a labor co-op, a business model new to the podcasting industry but one that has been tried by several small businesses including bakeries and pizzerias. The company said the ownership would be shared equally by at least 16 people, including Thorne.

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Thorne said the process of turning Maximum Fun into a co-op took about a year and a half.

Thorne said he would receive an advance and a percentage of the company’s revenue for a limited number of years. The company obtains a loan from the Community Development Financial Institutions Fund.

Employees choose to become owners in the co-op by paying hundreds of dollars, which go into a trust, which they take back with interest when they leave the company. Workers’ owners are also entitled to vote on the company’s board of directors. The new board oversees the management structure, which is expected to remain the same, Thorne said.

Thorne declined to divulge more specific details about the financial terms of the deal, or how much money he would get from the purchase. He said the amount he gets is much less than he would have if he sold it to another company.

Several companies have expressed interest in buying Maximum Fun—a large radio company, mid-sized media company and television company—but Thorn declined to be named.

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Selling would have presented its own problems. Thorne was worried about layoffs in areas such as bookkeeping under new ownership.

Eventually, Thorne began considering alternatives, which led him to the Oakland-based Equity Project, a non-profit organization that helps companies transition to employee ownership.

“Ultimately, this is the way to do it that won’t ruin everything and allow the company to be owned and operated by people who I trust are doing it for the same reasons I was,” Thorne said.

Other businesses also operated as worker-owned co-ops include Atwater Village Proof Bakeries. In recent years, companies, including Great Lakes Brewing Co. and Taylor Guitars, transferring ownership to workers through what is known as an employee stock ownership plan.

“The advantages of employee ownership is that you can elicit greater dedication from the company’s employees,” said Alec Levinson, senior research fellow at the USC Marshall School of Business’ Center for Effective Organizations. “They really feel like it’s theirs.”

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Thorne said he never imagined how big his company would grow.

He started podcasting as a college student and turned to the format after he couldn’t find traditional media jobs. Thorne later became the youngest national host on public radio when his show, “The Sound of Young America”, was syndicated by Public Radio International. The name of the show was changed to “Bullseye” in 2012, and it has been distributed by NPR since 2013.

On “Bullseye With Jesse Thorn”, Thorn interviews innovators and cultural icons including actor Eugene Levy, rap group the Little Brothers, and music artist “Werd Al” Yankovic. The tone of the interviews is conversational and personal, like the Millennium version of “Fresh Air” with Terry Gross.

In the early days of his company, Thorne said he was focused solely on helping pay the rent. Today, Maximum Fun generates millions of dollars in revenue each year, with 37 shows and 24 employees. Financial details have not been disclosed.

About 70% of the company’s revenue comes from membership, Thorne said, with the remaining amount coming from advertising and live events.

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He said the company is profitable. But it never aspired to dominate the podcast space or put exclusive programming behind a paywall. The podcasts associated with Maximum Fun are owned by the creator and are widely available on multiple platforms. “Bullseye” is broadcast on public radio stations including WNYC in New York and WBEZ in Chicago.

“We weren’t in this to grab market share, build and scale and lose money until we dominated our opponents,” Thorne said.

The podcast industry has gone through a head-turning cycle over the past few years.

For example, in 2019 Spotify announced its plans to Increase footprint into podcasting through acquisitions, fundamentally changing a landscape that was previously a fragmented market with many independent podcast production companies. Over the years, Spotify has bought podcast studios parrot And ringer And signed deals with high-profile celebrities including the company of Prince Harry and Meghan Markle, Archewelto.

But this year, Spotify has been under pressure to cut costs. In January, the CEO of Spotify announced that the company would do so layoffs 6% of its staff and CEO Dawn Ostroff, one of the main architects of podcast strategy, was departing.

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“There was a lot of speculative money in podcasting and it sort of led like hiccups in the ad market, to all these layoffs,” Thorne said.

Now, there are ramifications for the many companies that have poured resources into the space.

“There was just no way all these people who knew nothing about audio production, spending all that money so big, could sustain their operation,” Thorne said. “They were all mainly gamblers. They were all spending other people’s money hoping to get lucky.”

Despite the changes, Thorne said he believes the podcast audience continues to grow and Maximum Fun is in a good position. Even in today’s market, he said, there are small to mid-sized TV production companies that are thriving, and his company continues to produce great value content.

“Ultimately, we were making something that was intended to be really valuable to the people who consume it, and if we did that, there are a lot of ways we could make money,” Thorne said. “It has to be a certain number of people, but it doesn’t have to be an infinite number of people.”

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