Uber and Lyft can proceed to deal with their drivers as contractors in California, a state appeals court docket dominated Monday, in a significant victory for the ride-share firms.
California
Uber, Lyft can treat drivers as contractors, California court says
Proposition 22 exempts delivery-app and ride-share firms akin to Uber and Lyft — pioneers of the digital gig financial system — from classifying their drivers as full-time staff, which means the businesses shouldn’t have to supply advantages akin to medical health insurance. (Underneath Proposition 22, they’re solely required to supply a stipend towards drivers’ medical health insurance protection.)
Uber, Lyft and different gig-economy apps poured $200 million into the marketing campaign to go Prop 22, as it’s generally known as. The measure handed with round 59 % of the vote, however some voters mentioned they misunderstood the query on their ballots and as a substitute meant to provide drivers extra advantages, not fewer.
Monday’s ruling is more likely to be appealed.
In a press release, Uber’s chief authorized officer Tony West hailed the ruling as “a victory for app-based staff” and mentioned Proposition 22 “affords them new advantages whereas preserving the distinctive flexibility of app-based work.”
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