SACRAMENTO, Calif. (AP) — The California Supreme Court ruled Thursday that app-based ride-hailing and delivery services like Uber and Lyft can continue
FILE - A ride share car displays Lyft and Uber stickers on its front windshield in downtown Los Angeles, Jan. 12, 2016. The California Supreme Court ruled Thursday, July 25, 2024, that app-based ride sharing and delivery services like Uber and Lyft can continue treating their drivers as independent contractors rather than employees.SACRAMENTO, Calif.
A lower court ruling in 2021 had said the measure was illegal, but an appeals court reversed that decision last year. The California Supreme Court’s decision means companies like Uber and Lyft can continue their operations as before. The ruling is a defeat for labor unions and their allies in the Legislature who fought to secure more rights for drivers.
“We are committed to fiercely backing workers across our economy who have been written out and left behind and helping them knock down big obstacles to winning their union rights,” Service Employees International Union President April Verrett said in a statement. In November 2020, voters approved a ballot proposition to exempt app-based ride-hailing and delivery companies from the law. The proposition included “alternative benefits” for drivers, including a guaranteed minimum wage and subsidies for health insurance if they average at least 25 hours of work a week.
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