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.”
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