Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

US court rules Uber and Lyft workers are contractors

by March 14, 2023
March 14, 2023
US court rules Uber and Lyft workers are contractors

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

The California appeals court found that a labour 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.

Shares in Uber and Lyft were almost 5% higher in after-hours trading.

“Today’s ruling is a victory for app-based workers and millions of Californians who voted for Prop 22,” Tony West, chief legal officer at Uber said.

“We’re pleased that the court respected the will of the people and that Prop 22 will remain in place, preserving independence for drivers,” Mr West added.

Lyft said that the proposition “protects the independence drivers value and gives them new, historic benefits.”

The Service Employees International Union, which challenged the constitutionality of Proposition 22 with several drivers, said it was considering appealing against the court’s decision.

In November 2020, voters in California passed Proposition 22 that allowed freelance workers to be classified as independent contractors.

It was a victory for Uber and Lyft which run a $205m (£168.7m) campaign to support the measure.

However, the win came with some concessions and companies were required to offer workers some benefits, including healthcare and accident insurance.

Some drivers had backed Proposition 22 but other drivers and labour groups opposed it, pointing out all the benefits of being classified as employees including sick days, leave and overtime pay.

Tens of millions of people work in the global gig economy across services like food delivery and transport.

Gig workers are paid for individual tasks, such as a food delivery or a car journey, rather than getting a regular wage.

Most US federal and state labour laws, such as those requiring a minimum wage or overtime pay, do not apply to gig workers.

Firms like Uber and Lyft have come under increased scrutiny as the industry grows in size.

Read more:
US court rules Uber and Lyft workers are contractors

0
FacebookTwitterGoogle +Pinterest
previous post
Pensions to get boost as tax-free limit to rise
next post
Sector Spotlight: Watch How Technology Sector Leads on RRG

You may also like

South East overtaken in race for regional investment

June 19, 2023

Resilience Raises $100M to accelerate expansion across Europe

August 7, 2023

Virgin Media O2 launches £1m apprenticeship talent fund...

August 12, 2025

Brits set to plunge themselves into £3.7bn worth...

November 8, 2023

How to Boost Your Productivity: Lessons from Business...

September 23, 2024

Jacob Rees-Mogg ‘honoured’ to be new business secretary...

September 7, 2022

US inflation climbs to 3%, raising doubts over...

February 13, 2025

Electric car prices slashed as manufacturers push to...

November 6, 2024

Government announces plan to cap business energy bills...

September 21, 2022

Bringing Alcohol Detox to the Home

October 4, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • XRP price prediction hits new highs, GMO Miner helps you earn $6,800 a day

      August 28, 2025
    • West End retailers lose £310m from VAT-free shopping ban in first half of year

      August 28, 2025
    • Dollar slips as Trump moves to sack Fed governor Lisa Cook in unprecedented clash over central bank independence

      August 28, 2025
    • CDC Director Susan Monarez refuses to be fired as other officials call it quits

      August 28, 2025
    • Bill Gates met with Trump to talk ‘importance of US global health programs and health research’: spox

      August 28, 2025
    • Trump asks SCOTUS to uphold freeze on billions in USAID payments

      August 27, 2025

    Categories

    • Business (8,900)
    • Investing (2,246)
    • Politics (16,503)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved