Uber and Lyft drivers win court ruling to be treated as contractors in California

A California appeals court upholds state ballot measure classified Uber And Lyft Instead of being employees, drivers can be contractors.

Three judges overturned a ruling from 2022 by a California On Monday, the Superior Court judge allowed Proposition 22 to continue state law. This is a win for gig-based businesses like Uber that rely on workers and contracts. Uber will continue to hire drivers with no need to provide health insurance or benefits.

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“Today’s ruling is a historic victory for the nearly 1.4 million drivers who rely on the independence and flexibility of app-based work to earn income and for the integrity of California’s initiative system,” The Protect App-Based Drivers + Services coalition stated in a Press statement. “The Appeals Court upheld the fundamental policy behind the measure — to protect the independent contractor status of app-based drivers in California while providing drivers with new benefits.”

California lawmakers passed Assembly Bill 5 In September 2019, the state required that gig workers be treated as employees by companies. Uber, Lyft and other tech companies spent $220 millions to run campaigns in the next year. Proposition 22App-based workers would be considered contractors under the new law. It was approved by wide margins. A group of critics including the Service Employees International Union were also present. Filed In 2021, a suit will be filed to overturn the suit which was initially successful.

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“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,” David Huerta was the state leader of the union and spoke to the New York Times.

The union may appeal to the California Supreme Court.