March 31, 2023
A US court has ruled (PDF) that "gig" economy giants including Uber and Lyft can continue treating their workers as independent contractors in the state of California. The BBC reports: The California appeals court found that a labor measure, known as Proposition 22, was largely constitutional. Labour groups and some workers had opposed the measure, saying it robbed them of rights like sick leave. The firms say the proposition protects other benefits such as flexibility. The latest ruling overturns a decision made by a lower court in California in 2021, which found that Proposition 22 affected lawmakers' powers to set standards at the workplace. The state of California and a group representing Uber, Lyft and other firms appealed against the decision. On Monday, a three-judge panel at the appeals court ruled that workers could be treated as independent contractors. However it removed a clause, which put restrictions on collective bargaining by workers, from Proposition 22.

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A US court has ruled (PDF) that “gig” economy giants including Uber and Lyft can continue treating their workers as independent contractors in the state of California. The BBC reports:

The California appeals court found that a labor measure, known as Proposition 22, was largely constitutional. Labour groups and some workers had opposed the measure, saying it robbed them of rights like sick leave. The firms say the proposition protects other benefits such as flexibility.

The latest ruling overturns a decision made by a lower court in California in 2021, which found that Proposition 22 affected lawmakers’ powers to set standards at the workplace. The state of California and a group representing Uber, Lyft and other firms appealed against the decision. On Monday, a three-judge panel at the appeals court ruled that workers could be treated as independent contractors. However it removed a clause, which put restrictions on collective bargaining by workers, from Proposition 22.