Court rules that Uber and Lyft can keep treating drivers as contractors in California
If you'll recall, California passed Assembly Bill 5 in September 2019 that legally obligates companies to treat their gig workers as full-time employees. That means providing them with all the appropriate benefits and protections, such as paying for their unemployment and health insurance. As a response, Uber, Lyft, Instacart and DoorDash poured over $220 million into campaigning for the Prop 22 ballot measure, which would allow them to treat app-based workers as independent contractors.
. He said back then that the proposition illegally"limits the power of a future legislature to define app-based drivers as workers subject to workers' compensation law." The New York Times , one of them wanted to throw out Prop 22 entirely for the same reason the lower court judge gave when he handed down his decision. While the appeals court upheld the policy in the end, it ordered that a clause that makes it hard for workers in the state to unionize be severed from the rest of the proposition. That particular clause required a seven-eighths majority vote from the California legislature to be able to amend workers' rights to collective bargaining.
in a statement:"Every California voter should be concerned about corporations’ growing influence in our democracy and their ability to spend millions of dollars to deceive voters and buy themselves laws." The group is now expected to appeal this ruling and to take their fight to the Supreme Court, which could take months to decide whether to hear the case.
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