Uber and Lyft were ordered by California’s court of appeals to classify their drivers as employees within 30 days. In a 74-page opinion, the court upheld the injunction that was issued on August 10th requiring Uber and Ly FT to enroll their drivers.
Prop 22 would exempt Uber, Lyft and other gig economy companies from the state law. It would make it more difficult to classify workers as independent contractors. California voters weigh in on a ballot measure, prop 22, that would exempt workers from the law.
The injunction wo n’t go into effect until 30 days after the appeals ruling. Uber and Lyft are spending $ 186 million to win over the electorate.
The city attorney of San Francisco simply tweeted,’drivers are employees’.’this is a huge victory for drivers,’ the pro-prop 22 gig workers rising said in a statement.
Uber and Lyft are exploring their’appeal options’. They may take the case to the state’s Supreme Court.
Lyft spokesperson:’this ruling makes it more urgent than ever for voters to stand with drivers and vote yes on prop’.
A group of Uber drivers sued the company claiming the’constant barrage’ of messages in its app violates workers’ rights. The drivers are seeking up to $ 260 million in penalties.
The August 10th ruling was in response to a preliminary injunction filed by California attorney general Xavier Becerra. The law enshrines the so-called’ABC test’ to determine if someone is a contractor or an employee.
Uber and Lyft say most drivers prefer to be independent because of the flexibility and ability to set their own hours. Labor unions and elected officials contend this deprives them of traditional benefits like health insurance and workers’ compensation.