A California choose stated the November poll measure that allowed Uber Applied sciences Inc., Lyft Inc. and DoorDash Inc. to proceed treating their drivers as unbiased contractors is unenforceable and unconstitutional.
The businesses, which spent greater than $200 million to move Proposition 22 in November, stated they’d attraction the ruling.
The businesses don’t want to right away change their method of doing enterprise, however Friday’s ruling provides a wrinkle of their efforts to protect their independent-worker fashions and serves as a setback of their yearslong struggle in opposition to the California legislation on the coronary heart of the ruling.
Uber and different corporations are in a world tug of conflict with regulators over whether or not and grant extra advantages like paid sick depart and medical insurance to employees within the so-called gig economic system, the place apps distribute particular person duties to a pool of people who find themselves typically considered unbiased contractors.
California sued the businesses final 12 months, saying they had been in violation of the state’s so-called gig legislation as a result of none of them reclassified their drivers as staff after the statute went into impact in 2020. A high-stakes authorized battle ensued, culminating in Proposition 22, during which the businesses requested state voters to exempt them from the legislation.
