Uber And Lyft Drivers Are Employees, California Court Says
The decision won't have any immediate impact because it doesn't take effect for at least 30 days, well after the Nov. 3 vote on Proposition 22.
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The decision won't have any immediate impact because it doesn't take effect for at least 30 days, well after the Nov. 3 vote on Proposition 22.
Proposition 22 classifies app-based drivers as "independent contractors," instead of "employees," and provides independent-contractor drivers other compensation, unless certain criteria are met. There could be a minor increase in state income taxes paid by rideshare and delivery company drivers and investors.
The amount of financing behind the ballot measure — the most expensive proposition in the state's history according to Ballotpedia — underscores how important its passage is to the future of the businesses.
Californians are being asked decide if Uber, Lyft and other app-based drivers should remain independent contractors or be eligible for the benefits that come with being company employees.
By going after Uber and Lyft's ride-hailing business for allegedly violating a worker classification law, the California Attorney General is taking on what had long been the jewel of the on-demand economy.
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Dominic Garcia reports.
Kayla Moeller reports.