HomeTechnologyUber, Lyft can treat drivers as contractors, California court says

Uber, Lyft can treat drivers as contractors, California court says


Uber and Lyft can proceed to deal with their drivers as contractors in California, a state appeals courtroom dominated Monday, in a significant victory for the ride-share firms.

The ruling by the first District Court docket of Enchantment in San Francisco overturned a lower court’s 2021 ruling that Proposition 22 — handed by California voters the earlier 12 months — was “unenforceable” and unconstitutional.

Proposition 22 exempts delivery-app and ride-share firms reminiscent of Uber and Lyft — pioneers of the digital gig economic system — from classifying their drivers as full-time staff, which means the businesses wouldn’t have to offer advantages reminiscent of medical health insurance. (Below Proposition 22, they’re solely required to offer a stipend towards drivers’ medical health insurance protection.)

Uber, Lyft and different gig-economy apps poured $200 million into the marketing campaign to go Prop 22, as it’s generally known as. The measure handed with round 59 % of the vote, however some voters said they misunderstood the question on their ballots and as a substitute meant to present drivers extra advantages, not fewer.

Monday’s ruling is more likely to be appealed.

In a press release, Uber’s chief authorized officer Tony West hailed the ruling as “a victory for app-based employees” and mentioned Proposition 22 “affords them new advantages whereas preserving the distinctive flexibility of app-based work.”

This can be a creating story and will probably be up to date.

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