California Ballot Measure That Classifies Uber, Lyft Drivers as Independent Ruled Unconstitutional

  • 📰 WSJ
  • ⏱ Reading Time:
  • 48 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 63%

Business Business Headlines News

Business Business Latest News,Business Business Headlines

A California judge said Proposition 22, the November ballot measure that allowed Uber, Lyft and DoorDash to continue treating their drivers as independent contractors, is unenforceable and unconstitutional

A California judge said the November ballot measure that allowed Uber Technologies Inc., Lyft Inc. and DoorDash Inc. to continue treating their drivers as independent contractors is unenforceable and unconstitutional.to pass Proposition 22 in November, said they would appeal the ruling.

The companies don’t need to immediately change their way of doing business, but Friday’s ruling adds a wrinkle in their efforts to preserve their independent-worker models and serves as a setback in their yearslong fight against the California law at the heart of the ruling. Uber and other companies are in a global tug of war with regulators over whether and how to grant more benefits like paid sick leave and health insurance to workers in the so-called gig economy, where apps distribute individual tasks to a pool of people who are generally regarded as independent contractors.

California sued the companies last year, saying they were in violation of the state’s so-called gig law because none of them reclassified their drivers as employees after the statute went into effect in 2020. A high-stakes legal battle ensued, culminating in Proposition 22, in which the companies asked state voters to exempt them from the law.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

the fact that people voted that in was beyond disappointing. i think the tricky wording confused them. crazy.

nftbstoken

Good, Uber and Lyft will be gone from California! No way they stay and you’ll have more people buying cars and polluting the environment! Sooner to earth catastrophe I guess

Without prop 22, there is a huge curtailment in profits because it would ensure that drivers ('partners') are all guaranteed a minimum wage or 'living wage' when designated as employees under the auspices of jurisdictional labour laws and statuates designed to protect workers.

I believed that was true when I voted against it last year. These companies are too big to be renegade outliers.

Surely the state protecting the rights of its citizens is about as un-American as you can get? 🔥🇺🇸

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 98. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

California judge rules Prop 22 unconstitutional in blow to Uber, LyftBusiness Insider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know. horrible
Source: BusinessInsider - 🏆 729. / 51 Read more »

Judge shoots down law that kept Uber and Lyft drivers from being employeesA judge Friday shot down a law that would have allowed app-based companies to continue treating drivers as contractors instead of employees in California,...
Source: MarketWatch - 🏆 3. / 97 Read more »

Proposition 22 Is Unconstitutional, California Judge SaysThe ballot measure, which passed last November, allowed Uber, Lyft, DoorDash and other “gig economy” companies to bypass a law that sought to reclassify their drivers as employees. Awesome Pay a wage or let drivers bid on the job
Source: WSJ - 🏆 98. / 63 Read more »

California judge rules Prop 22 unconstitutional in blow to Uber, LyftBusiness Insider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know. horrible
Source: BusinessInsider - 🏆 729. / 51 Read more »