Uber, Lyft, and other “gig economy” tech companies favor treating drivers or delivery people as independent contractors while providing them with several benefits to prevent laws requiring them to be treated as independent contractors. is an employee.
A California appeals court on Monday upheld a state law that allows Uber, Lyft and other on-demand, app-based companies to treat drivers as independent contractors rather than employees.
The ruling comes as a win for ride-sharing companies and food delivery app platforms that backed a measure called Proposition 22 before it was passed in the state in 2020. .
“We are pleased that the court respects the will of the people and that Proposition 22 will be upheld, protecting drivers’ independence,” Uber’s chief legal officer Tony West told AFP.
California Voter Approved Referendum allows multiple people performance workers considered an independent contractor was found unconstitutional in August 2021, sparking more legal battles over the controversial measure.
Labor laws strongly backed by Uber, Lyft, and other on-demand, app-based services effectively overturn California law requiring them to reclassify drivers and provide employee benefits .
A state judge later ruled the law violated the California Constitution because the power to make workers’ compensation laws rested with legislators.
However, the appeals court ruled that Prop 22 “does not infringe upon the Legislature’s workers’ compensation authority.”
The proposal remains in effect as the lawsuit progresses.
As suggested, the driver still independent contractor but Uber and Lyft have to pay them a number of benefits including minimum wages, health care contributions and other forms of insurance.
Labor groups against the initiative argued that it would erode workers’ rights and interests.
Victory for California’s gig economy is expected to reverberate across the US, benefiting app-based services while stoking fears that big businesses are rewriting labor law.
Proposition 22 guarantees some support such as top pay minimum wage and additional health care coverage—but it designates drivers as self-employed, which means they are not entitled to some employee benefits.
“We’re all stunned, angry and ready to keep fighting,” said Nicole Moore, an Uber driver in Los Angeles and president of Rideshare Drivers United in California.
Moore hopes that the union group that filed a legal challenge to Proposition 22 will appeal the latest decision to the state. Supreme Court.
Moore argues that the proposal has failed to benefit the majority of carpoolers when it comes to payments and medical benefits.
“There’s nothing good about this law,” Moore told AFP.
“We hope the Supreme Court (California) will do the right thing.”
© 2023 AFP
quote: California court favors Uber driver as contractor (2023, March 14) accessed March 14, 2023 from https://techxplore.com/news/2023-03-california-court-uber-drivers -contractors.html
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