CA: Court rules that Uber and Lyft can keep treating contractors as contractors

Source: Engadget

“Uber and Lyft don’t have to worry about reclassifying its workers in California for now. An appeals court has just ruled that gig workers, such as rideshare drivers, can continue to be classified as independent contractors under Proposition 22. If you’ll recall, California passed Assembly Bill 5 (AB5) in September 2019 that legally obligates companies to treat their gig workers as full-time employees. That means providing them with all the appropriate benefits and protections, such as paying for their unemployment and health insurance. As a response, Uber, Lyft, Instacart and DoorDash poured over $220 million into campaigning for the Prop 22 ballot measure, which would allow them to treat app-based workers as independent contractors. It ended up passing by a wide margin in the state. In 2021, a group of critics that included the Service Employees International Union and the SEIU California State Council filed a lawsuit in 2021 to overturn the proposition.” (03/17/23)