Companies like Uber and Lyft can continue to treat their California drivers as independent contractors, a state appeals court ruled, allowing the tech giants to bypass other state laws requiring worker protections and benefits.
, that said drivers for companies like Uber and Lyft are independent contractors and are not entitled to benefits like paid sick leave and unemployment insurance. A lower court ruling in 2021 had said Proposition 22 was illegal, but Monday's ruling reversed that decision.
"Today the Appeals Court chose to stand with powerful corporations over working people, allowing companies to buy their way out of our state's labor laws and undermine our state constitution," said Lorena Gonzalez Fletcher, leader of the California Labor Federation and a former state assemblywoman who authored the 2019 law. "Our system is broken. It would be an understatement to say we are disappointed by this decision.
The California Legislature passed a law in 2019 that changed the rules of who is an employee and who is an independent contractor. It's an important distinction for companies because employees are covered by a broad range of labor laws that guarantee them certain benefits while independent contractors are not.biggest impact on app-based ride hailing and delivery companies
Three drivers and the Service Employees International Union sued, arguing the ballot proposition was illegal in part because it limited the state Legislature's authority to change the law or pass laws about workers' compensation programs. In 2021, a state judge agreed with them and ruled companies like Uber and Lyft were not exempt.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Uber, Lyft Score Victory as California Court Affirms Right to Treat Drivers as ContractorsA California appeals court decision preserves the companies’ independent-contract model in the state and could bolster their efforts elsewhere.
Read more »
Uber and Lyft shares rise after California court victory lets them classify drivers as contractorsA California appeals court reversed a lower-court ruling that had found Proposition 22 unconstitutional.
Read more »
California court rules for Uber, Lyft in ride-hailing caseA California appeals court has ruled companies like Uber and Lyft do not have to treat their drivers as employees
Read more »
Uber, Lyft can treat drivers as contractors, California court saysUber and Lyft can continue to treat their drivers as contractors in California, a state appeals court ruled Monday, in a major victory for the ride-share companies. It partially reversed a lower court's ruling that Proposition 22 was unconstitutional.
Read more »
California court rules for Uber, Lyft in ride-hailing caseA California appeals court has ruled companies like Uber and Lyft do not have to treat their drivers as employees.
Read more »
Uber, Lyft can keep treating California drivers as independent contractors court rulesEmployees are covered by a broad range of labor laws that guarantee them certain benefits while independent contractors are not. Monday's ruling allows rideshare companies to keep treating drivers as independent contractors.
Read more »