Court rules California gig worker initiative is unconstitutional By Reuters
© Reuters. FILE PHOTO: App-based gig workers hold a demonstration outside Los Angeles City Hall to urge voters to vote no on Proposition 22, a November ballot measure that would classify app-based drivers as independent contractors and not employees or agents, in Los Angeles, California, U.S., October 8, 2020. REUTERS/Mike Blake
(Reuters) – A California judge on Friday ruled that a 2020 ballot measure that exempted ride-share and food delivery drivers from a state labor law is unconstitutional as it infringed on the legislature’s power to set standards at the workplace.
Proposition 22 is unconstitutional as “it limits the power of a future Legislature to define app-based drivers as workers subject to workers’ compensation law”, which makes the entire ballot measure “unenforceable”, Alameda County Superior Court Judge Frank Roesch wrote in the ruling.
Gig economy companies including Uber (NYSE:), Lyft (NASDAQ:), Doordash and Instacart were pushing to keep drivers’ independent contractor status, albeit with additional benefits.
The ballot measure was meant to cement app-based food delivery and ride-hail drivers’ status as independent contractors, not employees.
Known as Proposition 22, it marked the culmination of years of legal and legislative wrangling over a business model that has introduced millions of people to the convenience of ordering food or a ride with the push of a button.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Xpeng Stock Soars Above Buy Point After EV Startup Showcases Flying Car Ahead Of Tesla
China’s Xpeng Motors (XPEV) showed off a flying car and plans for superchargers as a new EV looms, intensifying the…
Amazon’s Staten Island warehouse workers file petition for union election
© Reuters. FILE PHOTO: An employee pulls a cart full of items at Amazon’s JFK8 distribution center in Staten Island,…