Court Rules Uber, Lyft Can Classify Gig Workers as Contractors

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Uber Technologies Inc., Lyft Inc. and other gig economy companies scored a victory after a California appeals court upheld the current law classifying gig workers as independent contractors instead of employees.

The decision on Monday struck down a lower-court ruling that found Proposition 22, the state measure that lets companies treat workers as independent contractors, violated California’s constitution. The passing of Proposition 22 in November 2020 exempted the gig economy businesses from a state labor law requiring more companies to hire workers as employees and provide them benefits.

The latest ruling

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