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

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



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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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