Uber and Lyft must reclassify drivers as employees, appeals court finds

[BigmanPigman]

https://www.cnn.com/2020/10/23/tech/uber-lyft-california-appeal/index.html

"In a blow to Uber and Lyft, a California appeals court said Thursday that the companies must reclassify their drivers as employees rather than independent contractors, affirming an earlier court decision"

The ruling marks a significant development in a months-long legal fight between the companies and the state of California, which in May sued Uber and Lyft and claimed they were in violation of state law. It also puts greater pressure on the companies to successfully pass their California ballot measure which seeks to exempt them from the law.

If Prop. 22 passes, ride-hail and delivery drivers would continue to be treated as independent contractors. There would be some concessions on benefits, including a minimum earnings guarantee based on "engaged time" when a driver is fulfilling a ride or delivery request, but not the time they spend waiting for a gig.

"This ruling makes it more urgent than ever for voters to stand with drivers and vote yes on Prop. 22," Lyft spokesperson Julie Wood said in a statement to CNN Business on Thursday. Uber also pivoted to the vote on Prop 22 in its statement, saying that if the measure is not passed, "rideshare drivers will be prevented from continuing to work as independent contractors, putting hundreds of thousands of Californians out of work and likely shutting down ridesharing throughout much of the state."

[getagrip_already]

1. boo friggin hoo.....

F uber nd lyft. If they want to withdraw, I'm sure some company will emerge on an employee model basis.

[SoCalNative]

2. Uber, Lyft, DoorDash and others

have been pouring hundreds of millions of dollars in support of Prop 22 in CA. Just imagine if they would have used that money to pay their employees and provide benefits....

[alwaysinasnit]

3. These drivers would have better protections/benefits if they are categorized as employees. I don't

see the crumbs being offered under Prop. 22 as being more beneficial. What do you think?

[MichMan]

4. I wonder if they will now lose the ability to work the hours and amount of their choosing?