Uber, Lyft suggest changes but want drivers as contractors

SACRAMENTO, Calif. (AP) — Ride-hailing companies Uber and Lyft say they are willing to change the way they treat drivers in California as long as state lawmakers don't require them to classify drivers as employees, a move that would entitle them to a wide range of benefits.

The California-based tech firms face state legislation that would strictly limit how businesses can label workers as independent contractors. While some other industries have negotiated exceptions under the proposal, it's unclear if leading Democratic lawmakers will be open to a deal with the companies amid mounting scrutiny of labor practices in the burgeoning gig economy.

In an unusual joint op-ed published in the San Francisco Chronicle on Wednesday, the leaders of the rival ride-hailing companies said changing the way workers are classified would upend their businesses.

Instead, they suggested giving drivers in California a base wage and providing certain benefits if the companies can continue labeling them as independent contractors.

The unspecified base pay would be calculated from the time a driver accepts a ride request until the passenger is dropped off. The companies suggested letting workers pick from a range of benefits, such as education reimbursement.

The op-ed also suggested creating a new drivers' organization that would advocate for workers and administer benefits. The details behind the ideas have yet to be finalized but would only apply to drivers in California, at least at first.

Uber CEO Dara Khosrowshahi, Lyft CEO Logan Green and Lyft President John Zimmer all signed the op-ed.

The legislative clash shaping up this year over the rights of independent contractors follows a state Supreme Court decision last year that put a question mark over the way businesses classify many...