California Court Rules Uber And Lyft Can Treat Workers As Independent Contractors

A California appeals court dealt a blow to gig economy workers this week.

Politico reports:

“Gig companies like Uber and Lyft can continue classifying app-dispatched workers in California as independent contractors after a court largely ruled in the companies favor.

The Monday decision from California’s First District Court of Appeals vindicates tech companies and undercuts organized labor foes who challenged an industry ballot initiative exempting the firms from a sweeping new labor law. Judges reversed most of a lower court decision that had invalidated Proposition 22 in its entirety.

‘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 said in a statement.

But the ruling could still hand a significant victory to unions and worker advocates. It invalidated a provision of Prop 22 that sets a high bar for the Legislature to pass laws allowing workers to organize.

‘We are grateful that the California Court of Appeal has affirmed that companies like Uber, Lyft, Doordash and Instacart can’t keep drivers from joining together in a union through their deceptive ballot measure,’ plaintiff and driver Mike Robinson said in a statement.”

For the rest of the story, visit Politico here.

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