Uber launched secret project to target California drivers under new labor law

Don’t be fooled by its name. There’s nothing friendly about Uber’s “Project Luigi.”

The ride-share company publicly unveiled the project back in December under the guise of new features. But a Washington Post report Monday confirmed Uber had internally deemed the initiative as a “critical project around AB5,” a California employment classification law that went into effect January 1, 2020.

Under the new California law, gig-based companies are required to treat their workers as employees unless they can prove their contractors are truly independent. Put simply, Uber drivers will be afforded wage floors, benefits and worker protections unless Uber can demonstrate that their drivers are “free from [its] control and direction,” and that their work falls outside Uber’s “usual course of business.”

Just as our own Sasha Lekach had pointed out back in December, the new features — now confirmed as the products of “Project Luigi” — are designed to afford Uber drivers more freedom over how they operate, thereby bolstering Uber’s case that these drivers are independent workers under the new law.

For example, beginning in mid-January, Uber’s California drivers will be able to reject ride requests after viewing their destination, estimated ride time, and earning estimates. Uber said these features will allow drivers to "earn on [their] own terms" and "build [their] business on [Uber's] platform."

Uber's chief legal counsel in September claimed that it has successfully argued California drivers as independent contractors under AB5 and that this new feature backs their case.

“While we are confident that drivers are already correctly classified, these product changes will further strengthen drivers’ independence and preserve their ability to work when, where and how they want,” an Uber spokesperson told Mashable, the same quote given to the Washington Post.

Uber, alongside food delivery company Postmates, filed a suit against the state of California on December 30, 2019 to challenge the constitutionality of the new law. That leaves about 200,000 California-based Uber drivers in limbo.

Meanwhile, some experts and activists continue to advocate for AB5 as a measure of protection for gig workers.

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"It is yet another indication that Uber has no intention of treating its drivers fairly and respectfully. It’s a backdoor attempt to circumvent AB5 and continue to exploit Uber drivers," The Amalgamated Transit Union said in a press release, referring to Project Luigi. "We will persevere in the fight to ensure the basic rights of rideshare drivers in the face of Uber and Lyft’s shameless assault on workers’ rights across the nation.”

Uber, on the other had, said it will continue to "build more products that help [drivers] grow [their] business." But what that means in relation to AB5 is, so far, up in the air.

UPDATE: Jan. 6, 2020, 3:30 p.m. EST Updated with comment from Uber spokesperson and The Amalgamated Transit Union.