A California judge ruled Prop. 22, which allowed Uber, Lyft, DoorDash and other app-based businesses to classify their workers as independent contractors, unconstitutional.
California’s giant ride-hailing and delivery companies suffered a setback Friday as a state Superior Court judge invalidated a 2020 ballot proposition that allowed Uber, Lyft, DoorDash, Instacart and other app-based businesses to classify theirIn a lawsuit brought by the Service Employees International Union and several drivers, Alameda County Superior Court Judge Frank RoeschThat’s in part because the law, Roesch wrote, infringes on the power of the Legislature explicitly granted by the state...
That prohibition “appears only to protect the economic interests of the network companies in having a divided, un-unionized workforce, which is not a stated goal of the legislation.”Uber, Lyft and other gig companies spent millions of dollars to shape California labor law in their image. The result: support from voters in neighborhoods as varied as Beverly Hills and Compton.
Uber and other gig economy companies spent more than $220 million last year in the nation’s costliest-ever ballot initiative campaign to exempt their drivers from a 2019 law, AB 5, requiring gig workers across many industries to be classified as employees with benefits such as minimum wage, overtime and workers’ compensation in case of injury.
After consideration by the state court of appeals, it will eventually be decided by the California Supreme Court, she said, adding that the process could take a year.
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