On this January 12, 2016, file photo, a rideshare car with Lyft and Uber stickers on its front windshield in downtown Los Angeles. A California appeals court ruled on March 13, 2023 that a voter-backed initiative to exempt Uber and Lyft from a key provision of state labor law was constitutional, a The reversal of the lower court’s decision marks a victory for the ride-hailing giants.
Richard Vogel/AP
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Richard Vogel/AP
On this January 12, 2016, file photo, a rideshare car with Lyft and Uber stickers on its front windshield in downtown Los Angeles. A California appeals court ruled on March 13, 2023 that a voter-backed initiative to exempt Uber and Lyft from a key provision of state labor law was constitutional, a The reversal of the lower court’s decision marks a victory for the ride-hailing giants.
Richard Vogel/AP
SACRAMENTO, California — App-based ride-hailing and delivery companies like Uber and Lyft can continue to treat their California drivers as independent contractors, a state appeals court ruled on Wednesday. Two, allowing tech giants to bypass other state laws that mandate worker rights and protections.
The ruling mostly supported a voter-approved law, known as Proposition 22, which says drivers of companies like Uber and Lyft are independent contractors and are not entitled to benefits such as vacation time. sick pay and unemployment insurance. A lower court ruling in 2021 said Proposition 22 was illegal, but Monday’s ruling overturned that decision.
“Today’s ruling is a victory for those working on the app and the millions of Californians who voted for Proposition 22,” said Tony West, Uber’s chief legal officer. respect the will of the people.”
The ruling is a setback for labor unions and their allies in the state Legislature, who passed legislation in 2019 requiring companies like Uber and Lyft to consider their drivers as staff.
“Today, the Court of Appeals chose to side with powerful corporations for workers, allowing companies to buy,” said Lorena Gonzalez Fletcher, leader of the California Labor Federation and former state congressman. ransom our state labor laws and subvert our state constitution. who authored the 2019 law, “Our system is broken. It would be an overstatement to say we are disappointed by this decision.”
Mike Robinson, one of the drivers who filed a lawsuit against the Bill, said the ruling was not a complete failure for labor unions, as the court had ruled that the companies could not prevent the Their drivers join labor unions and negotiate together for better working conditions. 22.
“Our right to join together and to bargain collectively creates a clear path for drivers and delivery workers to hold the giant gig corporations accountable,” he said. “But make no mistake, we still believe that Proposition 22 – in general – is an unconstitutional attack on our fundamental rights.”
The California legislature passed legislation in 2019 changing the rules about who is an employee and who is an independent contractor. That’s an important distinction for companies because employees are protected by many employment laws that guarantee them certain benefits while independent contractors are not.
While the law applies to many industries, it has had the biggest impact on app-based delivery and ride-hailing companies. Their business relies on contracting people to use their own cars to carry people and deliver goods. Under the 2019 law, companies will have to treat those drivers as employees and offer certain benefits that will significantly increase the cost of the business.
In November 2020, voters agreed to exempt ride-hailing and app-based delivery companies from the 2019 law by approving a ballot proposal. The proposal includes “alternative benefits” for drivers, including a guaranteed minimum wage and health insurance benefits if they work an average of 25 hours a week. Companies like Uber, Lyft, and DoorDash have spent $200 million on a campaign to ensure the campaign is a success.
The three drivers and the Service Employees International Federation sued, arguing that the ballot proposal was illegal in part because it limited the state Legislature’s authority to change or pass legislation on workers compensation programs. In 2021, a state judge agreed with them and ruled that companies like Uber and Lyft were not exempt.
Monday, a state appeals court overturned that decision, allowing the companies to continue treating their drivers as independent contractors.
Judgment may not be final. Service Workers International Union can still appeal the decision to the California Supreme Court, which can decide to hear the case.
“We will consider all of those options as we decide how to ensure we continue to fight for these workers,” said Tia Orr, executive director of SEIU California.
