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Ride-sharing apps such as Uber and Lyft can continue to treat drivers as independent contractors, a California appeals court ruled Monday, overturning a lower court ruling barring them from doing so. .
In November 2020, California voters approved Proposition 22. This allowed the makers of ridesharing and delivery apps to classify their drivers as independent contractors. A California judge ruled the proposal unconstitutional in 2021, arguing that it violated Congress’ power to set standards in the workplace.state and Organizations representing companies, etc. Parties have appealed that decision, and Monday’s ruling ruled in their favor.
Shares of ride-sharing and delivery companies rose on the news. uber, liftand door dash Notching gains of 4% or more overtime.
App-based gig worker Jesus Barra stands on top of his car during a demonstration outside Los Angeles City Hall, urging voters to VOTE NO on Proposition 22. October 8, 2020, Los Angeles, California, USA.
Mike Blake | Reuters
Proposition 22 created a set of criteria that determine whether a rideshare driver is an employee or an independent contractor> In practice, there are certain minimum wages, overtime, or Exempted Uber and similar companies from complying with workers’ compensation laws. . instead, ballot measure It required companies to provide compensation and medical “subsidies” based on “engaged” driving hours, as well as other benefits such as safety training and “sexual harassment training.”
that is most expensive A vote issue in California’s history, ridesharing companies donated more than $181 million to the “yes” campaign.enterprise reportedly actively encouraged drivers to support the initiative, which passed with 58.6% of the votes in favor.
A group of rideshare drivers won a lower court judgment in an attempt to void Proposition 22. But in his 63-page opinion issued Monday, a California judge on the First District Court of Appeals disagreed with the court and upheld the proposal.
“Proposition 22 does not invade Congress’ workers compensation authority or violate the Single Subject Rule,” the opinion read.
“Today’s ruling is a victory for app-based workers and the millions of Californians who voted for Proposition 22. We are pleased to announce that Proposition 22 provides the benefits of the work we are undertaking,” Uber Chief Legal Officer Tony West said in a statement.