Employees 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.
drivers as independent contractors, a state appeals court ruled Monday, allowing the tech giants to bypass other state laws requiring worker protections and benefits.
The ruling is a defeat for labor unions and their allies in the state Legislature who passed a law in 2019 requiring companies like Uber and Lyft to treat their drivers as employees. "Our right to join together and bargain collectively creates a clear path for drivers and delivery workers to hold giant gig corporations accountable," he said. "But make no mistake, we still believe Prop 22 — in its entirety — is an unconstitutional attack on our basic rights."Proposition 22 is actually a battle that started when Assembly Bill 5 which was signed into law last year.
In November 2020, voters agreed to exempt app-based ride hailing and delivery companies from the 2019 law by approving a ballot proposition. The proposition included "alternative benefits" for drivers, including a guaranteed minimum wage and subsidies for health insurance if they average 25 hours of work a week. Companies like Uber, Lyft and DoorDash spent $200 million on a campaign to make sure it would pass.
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