Web Desk
Jul 29, 2024
Following extensive deliberations held among the lawmakers and prolonged, successful protests organised by workers, the Supreme Court's judge has ruled out that Uber, Lyft, and DoorDash workers in California will remain independent contractors.
The decision comes as an outcome of Proposition 22, with the workers of Uber, Lyft and DoorDash lamenting it.
Proposition 22 was a ballot initiative in California that became law after the November 2020 state election, passing with 59% of the vote and granting app-based transportation and delivery companies an exception to Assembly Bill 5 by classifying their drivers as independent contractors, rather than employees.
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As the decision has granted ride-hailing and food delivery services an inappropriate edge to exploit their workers, California is the only state of the United States wherein the Proposition 22 law applies.
The credit of the companies concerned relishing the favourited end also goes to the heavy campaigning they resorted to evade having their gig workers recognised as employees.
Although the Prop 22 law ensures workers some of the most fundamental protections, including 120% of the regular minimum wage for each hour of driving, health insurance stipend, and reimbursement of losses endured on duty, it's way off the benefits they would've had to offer if the ruling had classified workers as employees.
All the firms that lodged the petition, including Uber, Lyft, and DoorDash, have agreed to the court's decision by releasing official memos.
“From the moment it became law, Prop 22 has been working for the millions of drivers and couriers that earn on platforms like ours. Uber alone has delivered more than $1 billion in direct benefits to date," writes Uber in a post on its website.
