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US Court Decides Uber & Lyft Drivers Are Independent Contractors

Uber & Lyft Drivers Are Independent Contractors

Overview:

The appeal court of California found that the labor measure that the law or proposition 22 was largely constitutional. The group of labors and workers are opposed to the measure. It says that their rights to sick leave are robbed. According to the firm, proposition law 22 protects the other benefits of the workers like flexibility.

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The latest ruling overturns the decision that is made by the lower court in California in 2021. Which states that proposition 22 will affect the lawmakers whose powers to set the standard at the workplace. The California state and the group representing Lyft, Uber, and the other firms which are appealed against the decision.

Proposition Law 22 Keep in place:

Yesterday Monday, there is a three-person panel who are judges at the appeals court ruling that the workers are treated as independent contractors from now. However, this decision removes the clause which put restrictions on collective bargaining by the workers from proposition 22.

The shares in Uber and Lyft are higher by almost 5% in the after-hours trading. The Chief legal officer of Uber Tony West said that today is a victory for the workers who are app based. Plus, other millions of California people vote for Proposition 22. We are glad that the court respects proposition 22 and that it will remain in place and also respect the people. It is Independence Day for the drivers of the firm.

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The firm Lyft said that the proposed law protects the value of drivers and provides them with other historic benefits. The Employees of the service International Union who challenged the constitutional proposition law 22 with many drivers said that it was considering an appeal against the decision made by a court.

California Allow Freelance workers for independent Contractor:

In November 2020, the people who voted for Proposition 22 in California allow freelancers peoples to be independent contractors and to be classified. This was the victory of Uber and Lyft Companies which run a $205m campaign to support the labor measure.

The win came with a few concessions and the companies needed to offer their workers some historic benefits. The benefits include healthcare and accident insurance. Few drivers backed Proposition 22, on the other hand, few drivers opposed it. They point out all the benefits of being classified as employees which include sick days, leave, and overtime pay. 

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There are More than Ten million peoples who are working in the global gig economy across all services including transport and food delivery. The gig workers get paid for individual tasks like food delivery or car journey instead of getting a regular wage.

Most of the US state labor laws and federal such as those that need a minimum wage or overtime pay do not apply to gig workers. Companies like Uber and Lyft increase their audit as the industry has grown in the size.

Conclusion:

The appeal court of California keeps proposition law 22 in place and helps workers of many firms to get many benefits. This is a victory for the Uber and Lyft Company workers as they work similarly to the previous.

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