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Uber and Lyft California Court Ruling in Ride-Hailing Lawsuit: NPR

In this January 12, 2016 file photo, a rideshare car with Lyft and Uber stickers on the windshield in downtown Los Angeles. A California appeals court ruled on March 13, 2023, that a voter-backed initiative to exclude Uber and Lyft from key provisions of the state’s employment law was constitutional.

Richard Vogel/AP


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Richard Vogel/AP


In this January 12, 2016 file photo, a rideshare car with Lyft and Uber stickers on the windshield in downtown Los Angeles. A California appeals court ruled on March 13, 2023, that a voter-backed initiative to exclude Uber and Lyft from key provisions of the state’s employment law was constitutional.

Richard Vogel/AP

SACRAMENTO, Calif. — App-based ride-hailing companies such as Uber and Lyft can continue to treat California drivers as independent contractors, a state appeals court ruled Monday, after tech giants announced that workers would allowed to circumvent other state laws requiring the protection and welfare of

The ruling follows a voter-approved law called Proposition 22, which said drivers for companies like Uber and Lyft are independent contractors and are not entitled to benefits such as paid sick leave or unemployment insurance. almost support the A 2021 lower court ruling held Proposition 22 illegal, but Monday’s ruling overturned that ruling.

Tony West, Uber’s chief legal officer, said: “I am glad that the court respected the will of the people.”

The ruling is a defeat for unions and their supporters in the state legislature, which in 2019 passed a law requiring companies like Uber and Lyft to treat their drivers as employees.

Lorena Gonzalez-Fletcher, leader of the California Labor Federation and former state legislator, said, “Today, the Court of Appeals chose to favor powerful corporations rather than workers, and to prevent corporations from breaking out of the state’s labor laws. , allowed the state constitution to be undermined.” who made the 2019 law.

According to Mike Robinson, one of the drivers who filed a lawsuit challenging the proposition, the ruling was not a total defeat for the union.

“Our right to organize and bargain collectively creates a clear path for drivers and delivery workers to hold huge gig companies accountable,” he said. “But make no mistake. I still believe Proposition 22 as a whole is an unconstitutional attack on our fundamental rights.”

In 2019, the California Legislature passed a law changing the rules for employees and independent contractors. This is an important difference for businesses. Because employees are subject to extensive labor laws that guarantee certain benefits, independent contractors are not.

The law applies to many industries, but has had the greatest impact on app-based ride-hailing and delivery companies. Their business relies on contracts with people and they use their own vehicles to pick and deliver people. Under the 2019 law, companies must treat these drivers as employees and offer them certain benefits that significantly increase the company’s costs.

In November 2020, voters agreed to exempt app-based ride-hailing and delivery companies from the 2019 law by approving a ballot proposal. The proposal included “alternative benefits” for drivers, such as minimum wage guarantees and health insurance subsidies if they worked an average of 25 hours a week. Companies like Uber, Lyft, and DoorDash spent his $200 million on campaigns to make sure they got through.

The three drivers and the Service Employees International Union sued, alleging that the ballot proposal was illegal because it restricted the legislature’s ability to change or pass laws relating to workers’ compensation programs. In 2021, state judges agreed with them, leaving controlled companies such as Uber and Lyft exempt.

On Monday, a state appeals court overturned that decision, allowing the company to continue treating drivers as independent contractors.

Arbitration may not be final. Service Employees International Union may appeal this decision to the Supreme Court of California.

“We will consider all of these options as we decide how to continue fighting for these workers,” said Tia Orr, executive director of SEIU California.

Summarize this content to 100 words

In this January 12, 2016 file photo, a rideshare car with Lyft and Uber stickers on the windshield in downtown Los Angeles. A California appeals court ruled on March 13, 2023, that a voter-backed initiative to exclude Uber and Lyft from key provisions of the state’s employment law was constitutional.

Richard Vogel/AP

hide caption

toggle caption

Richard Vogel/AP

In this January 12, 2016 file photo, a rideshare car with Lyft and Uber stickers on the windshield in downtown Los Angeles. A California appeals court ruled on March 13, 2023, that a voter-backed initiative to exclude Uber and Lyft from key provisions of the state’s employment law was constitutional.

Richard Vogel/AP

SACRAMENTO, Calif. — App-based ride-hailing companies such as Uber and Lyft can continue to treat California drivers as independent contractors, a state appeals court ruled Monday, after tech giants announced that workers would allowed to circumvent other state laws requiring the protection and welfare of The ruling follows a voter-approved law called Proposition 22, which said drivers for companies like Uber and Lyft are independent contractors and are not entitled to benefits such as paid sick leave or unemployment insurance. almost support the A 2021 lower court ruling held Proposition 22 illegal, but Monday’s ruling overturned that ruling. Tony West, Uber’s chief legal officer, said: “I am glad that the court respected the will of the people.”

The ruling is a defeat for unions and their supporters in the state legislature, which in 2019 passed a law requiring companies like Uber and Lyft to treat their drivers as employees. Lorena Gonzalez-Fletcher, leader of the California Labor Federation and former state legislator, said, “Today, the Court of Appeals chose to favor powerful corporations rather than workers, and to prevent corporations from breaking out of the state’s labor laws. , allowed the state constitution to be undermined.” who made the 2019 law.

According to Mike Robinson, one of the drivers who filed a lawsuit challenging the proposition, the ruling was not a total defeat for the union. “Our right to organize and bargain collectively creates a clear path for drivers and delivery workers to hold huge gig companies accountable,” he said. “But make no mistake. I still believe Proposition 22 as a whole is an unconstitutional attack on our fundamental rights.” In 2019, the California Legislature passed a law changing the rules for employees and independent contractors. This is an important difference for businesses. Because employees are subject to extensive labor laws that guarantee certain benefits, independent contractors are not.

The law applies to many industries, but has had the greatest impact on app-based ride-hailing and delivery companies. Their business relies on contracts with people and they use their own vehicles to pick and deliver people. Under the 2019 law, companies must treat these drivers as employees and offer them certain benefits that significantly increase the company’s costs. In November 2020, voters agreed to exempt app-based ride-hailing and delivery companies from the 2019 law by approving a ballot proposal. The proposal included “alternative benefits” for drivers, such as minimum wage guarantees and health insurance subsidies if they worked an average of 25 hours a week. Companies like Uber, Lyft, and DoorDash spent his $200 million on campaigns to make sure they got through.

The three drivers and the Service Employees International Union sued, alleging that the ballot proposal was illegal because it restricted the legislature’s ability to change or pass laws relating to workers’ compensation programs. In 2021, state judges agreed with them, leaving controlled companies such as Uber and Lyft exempt. On Monday, a state appeals court overturned that decision, allowing the company to continue treating drivers as independent contractors. Arbitration may not be final. Service Employees International Union may appeal this decision to the Supreme Court of California. “We will consider all of these options as we decide how to continue fighting for these workers,” said Tia Orr, executive director of SEIU California.

https://www.npr.org/2023/03/14/1163301631/california-court-says-uber-lyft-can-treat-state-drivers-as-independent-contracto Uber and Lyft California Court Ruling in Ride-Hailing Lawsuit: NPR

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