A California appeals court has ruled companies like Uber and Lyft do not have to treat their drivers as employees.
In this Jan. 12, 2016, file photo, a ride share car displays Lyft and Uber stickers on its front windshield in downtown Los Angeles.
“Today’s ruling is a victory for app-based workers and the millions of Californians who voted for Prop 22," said Tony West, Uber’s chief legal officer. ”We’re pleased that the court respected the will of the people.”The ruling is a defeat for labor unions and their allies in the state Legislature who passed a law in 2019 requiring companies like Uber and Lyft to treat their drivers as employees.
“Our right to join together and bargain collectively creates a clear path for drivers and delivery workers to hold giant gig corporations accountable,” he said. “But make no mistake, we still believe Prop 22 — in its entirety — is an unconstitutional attack on our basic rights.” Three drivers and the Service Employees International Union sued, arguing the ballot proposition was illegal in part because it limited the state Legislature's authority to change the law or pass laws about workers' compensation programs. In 2021, a state judge agreed with them and ruled companies like Uber and Lyft were not exempt.
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