From Investing.com: 2024-05-21 19:30:44

The California Supreme Court is considering whether voters have the power to allow app-based services like Uber and Lyft to classify drivers as independent contractors. The 2020 ballot measure, Proposition 22, exempts drivers from being treated as employees under a 2019 state law, prompting debates on worker classification and benefits.

App-based services spent over $200 million on Prop 22, which passed with nearly 60% of the vote in California. The measure allows drivers to be classified as independent contractors with certain benefits but without employee protections like minimum wage or overtime pay. Legal battles and debates continue over the classification of gig workers.

The debate over gig workers’ classification extends beyond California, with other states facing similar legal battles. In Minnesota, lawmakers passed a measure that sets a minimum wage for gig drivers, while Massachusetts is considering ballot proposals on the relationship between app-based companies and drivers. Legal challenges by state officials against Uber and Lyft are ongoing.

The California Supreme Court is expected to issue a ruling within 90 days of hearing arguments. The outcome of this case could have significant implications for the gig economy and the classification of workers nationwide. Gig workers’ rights and benefits remain at the center of legal battles and legislative debates across the country.



Read more at Investing.com: California court weighs fate of law treating app-based drivers as contractors By Reuters